Since its inception, Amazon has been the king of online shopping with no likelihood of another online store dethroning it. Other online stores don’t stand a chance competing with this giant.
As such, the only options on the table are always either to partner with Amazon and sell your products on the company’s online platform or shift to another business.
However, the current seems to be changing in the e-commerce world as other giant retailers that previously partnered with Amazon are backing out of using the online store. Only recently, Nike officially announced that it was breaking up with Amazon and decided to start selling all of its products exclusively on its online store. So, what does this mean for Amazon’s e-commerce future? Keep reading to find out.
1. Selling in E-Commerce During the Amazon Era
Amazon is still a giant in the e-commerce industry. The company not only boasts its huge success in the online retail platform, but it’s also thriving in the digital market space that is seamlessly integrated with its retail shopping experience.
The only way other retailers would stand to make any profits was by partnering with Amazon. Competing with the retail giant was basically suicide for any business.
This was backed by data collected by Statista explaining that in 2019’s third quarter, 53% of all paid units in Amazon were of third-party sellers. However, with millions of retailers pulling out of partnerships with Amazon, you would think that the retail giant’s reign on the e-commerce world would dwindle.
2. Some Retailers Are Leaving Amazon
So far, Nike is the biggest retailer that has broken up with Amazon. However, it is not the first to do so. Other retail giants are also ditching Amazon and opting to sell their products online independently. Generally, this seems to be the biggest disruption in the company’s retail business since its inception.
3. Retailers are Mimicking Amazon’s Tactics
Some retailers have opted not to partner with the retail giant but mimic its tactics with the hope of breaking through in this fiercely competitive market.
As much as this looks to be a smart idea, choosing to give more for less through ridiculous discounts and free shipping can be a detrimental move for your business. You must acknowledge that even Amazon suffers losses from its marketing tactics. Amazon offsets this loss through its huge sales profits.
The retail giant may be losing many of its partnerships. But as long as its sales and marketing tactics hold up, online buyers will keep pouring in. One such sales tactic is its package delivery service.
4. Evolution of Parcel delivery service
Over the years, the retail giant has perfected its parcel delivery services that other retailers cannot match. In just a few clicks, you can order items from thousands of its retailers and have them delivered to you the same day.
If you are not happy with the product, then you can return it to the nearest UPS store and get your refund almost instantly. Very few other online retailers can beat this. Parcel delivery is a critical section of any online retailing company.
From the above information, it is evident that Amazon still has its grip on the e-commerce industry. And even though other retailers are breaking up with it and starting their independent online stores, it’s safe to say that this giant retailer will be around for a long time and still have a significant grip on e-commerce influence.