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Is Amazon a profitable way for your eCommerce business?

Amazon is considered as being very ambitious in terms of e-commerce platforms and digitalisation. Sometimes people cannot remember that the company started off as a mail-order business from a small warehouse. As part of our lives, it tries to become more so with announcements like buying groceries, TV programmes or even the latest announcement about entering the pharmaceutical industry. In addition to this, we should not forget, the acquisitions that are happening daily across the globe.

Obviously, fear is logical as 30% of B2B retailers are afraid of this competition from Amazon and the impact that it might have on their own business and eCommerce stores for the next 18 to 24 months.

We should not underestimate the power and the reach of Amazon and the warnings that many industry people are mentioning. However, there are B2B players that are not afraid of Amazon’s presence.Why?

Amazon Infrastructure

Many B2B businesses use Amazon as a way to be able to approach the international markets. A great example is New Balance which uses Amazon to be able to provide next day international coverage with Prime service. The utilisation of Amazon logistics gives companies the opportunity to reach new potential customers, new sectors or even to try new projects in the market. At the same time, it is an advantage for smaller B2B businesses as they can add value during the customer journey without the need for any further investments.

Customer service is a PRIORITY

When it comes to retail, customer service is a must. Few B2B companies use Amazon to differentiate themselves in the market. There are some rumours that despite the growth that is quick and efficient, companies believe that the customer service is still an issue for Amazon. Technology might be great, but it is obvious that a physical presence of a business is a must because real-life people want to have a personal touch. People always want to touch the product before purchase so there is still a shopping process and an interpersonal interaction.

Although Amazon has offered easier access around the world, in most cases in the pre-sale journey it does not offer any customer experience. As a result, many companies are focusing on creating better customer service and going an extra mile.

Brand positioning

Many B2B retailers consider that because of the size of Amazon it is impossible to stand out. In addition, there are certain days like Black Friday or Cyber Monday that Amazon can take over.

Selling on Amazon is critical for B2B companies because it gives them the opportunity to re-position their brand. For some of them, there is another reason which is brand protection which automatically means that they are more exclusive. 

Undeniably, Amazon has a major impact on the retail industry whether it is in the B2B or B2C sector. However, for the above mentioned reasons, there are still bright options for companies to be competitive and evolve more with their e-commerce platforms.