I’ve just read ‘The Amazon Roadmap: How Innovative Brands are Reinventing the Path to Market’, written by Betsy Mcgin & Philip Segal. An interesting book and well laid out for an easy read. I want to share (paraphrase) an extract relating to reasons possibly preventing CEO’s/owners from “getting behind this tectonic shift in retail.”

In this article we’ll go over the 4 reasons business owners are holding back from e-commerce. Let’s get started!

4 Reasons business owners are holding back from e-commerce

1. Our products aren’t the type that sell online.
2. We haven’t decided that this is the direction we want to go as a company.
3. It’s such a small piece of our business, that we shouldn’t devote too many resources to it
4. Our distributors/retailers have asked us not to sell on Amazon.

Our products aren't the type that sell online

This is unlikely since it is genuinely more difficult to think of a product that does not sell online than one that does. From frozen pizza crusts, luxury jewelry, laundry detergent, and mattresses or hair extensions, it’s all online. Why deny this?

We haven't decided that this is the direction we want to go as a company

Well… the industry has decided for you.

The growth of Ecomm has been incredible, the convenience it offers has seen it taking an ever-increasing share of retail sales. And at a very rapid rate; in South Africa there has consistently been high double-digit Ecomm revenue growth YoY. Globally, over 30+% of electronics, books, toys, sporting goods, and apparel are purchased online. And 20+% of home goods and furniture.

Groceries (an ‘unconventional’ category) alone are a 100 billion USD market.

It's such a small piece of our business, that we shouldn't devote too many resources to it

Keep thinking this and it will remain a small piece of your business. Ecomm is the channel driving growth in retail, and as brands that have led in Ecomm have shown, early in has first mover advantages. Whereas delaying your entry can have consequences by preventing you from effectively challenging the category leaders. This typically requires investment spending and over-resourcing against the relative size of the business to get the Amazon flywheel moving.

Our distributors/retailers have asked us not to sell on Amazon

Do your selling partners own you? If you allow the self-interest of other companies to drive your business strategies, that’s probably a losing one. And if you don’t control your Amazon destiny, others might. Digging into Ecomm is one way of preventing resellers from diluting and pressuring your brand.

Ready to elevate your Amazon selling game? Reach out to our full-service Amazon agency for expert assistance tailored to your needs.

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