strategy

Thriving in the Amazon-Dominated Landscape

12/01/2018 Written by: Leon Yeh
Thriving in the Amazon-Dominated Landscape

Just as Bill Gates revolutionized computing, Jeff Bezos became the world's richest person by dominating internet commerce. "A vacuum in technology paves way for a new one" — businesses must adapt accordingly.

The Amazon Problem

Amazon Marketplace offers easy product listing and customer access, but sellers essentially "rent their customers" to Amazon. The company leverages sales data to develop competing private label products like Amazon Basics and Amazon Elements.

The Native Brand Alternative

Direct-to-consumer companies with complete ownership and control — like Kylie Cosmetics and Movement Watches — achieved significant valuations with minimal staff.

Five Recommendations

  1. Develop iterative, feedback-driven products
  2. Map customer journeys across awareness, consideration, and purchase phases
  3. Create distinctive brand experiences
  4. Employ contextual, data-informed advertising
  5. Build direct customer relationships through emerging channels

Native brands require less capital than traditional retail and grant entrepreneurs complete creative control and 100% ownership while collecting valuable customer data independently.