3 Reasons Brands Should Not Ignore Amazon

I frequently speak with manufacturers who want to avoid Amazon like the plague. Most have now realized that the marketplace is here to stay, but they see Amazon as a problem because they don’t know how to control it. In every age, new technologies disrupt the status quo, and the brands who adapt to it come out on top. So what should be done about the online retail giant who accounts for nearly half of all e-commerce? Brand owners need a clear strategy to take control of their brand on the marketplace or they risk losing valuable market share, providing a poor customer experience, providing inconsistent brand identity, and losing profitability.

Several Big Retailers are Struggling or Closing

The movement toward internet shopping has been happening for quite some time now and it has only accelerated with Amazon’s growth. This is a trend that will only continue as customer expectations and behavior continues to evolve in a digital age. Traditional Main Street has taken some major blows over the past year, with many closing shop like Wet Seal, Payless Shoes, and Gymboree. The apparel industry was far from the only industry affected. Housewares and electronics stores such as Bed Bath and Beyond and Radio Shack have also taken major blows as they have struggled to adapt to these changes.

While these many stores have struggled in this age of Amazon, Amazon has been making incredible gains. In fact, Amazon’s online sales growth last year was more than everyone else’s combined.

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This Trend is Set to Continue

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The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.

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