Small Business Secrets: How Do Other Business Enterprises Compete With Amazon?

　　 Amazon It likes to play economies of scale more than other suppliers, and it can use this strength to provide extremely lethal prices and fast and inexpensive express service.

In this industry, from second points down, even if a dozen large scale electricity providers are tied together, it will not match the size of the Yaa Ma Xun family. It can be seen that Amazon's scale advantage is huge, and it also takes advantage of the advantages brought by this scale economy to reinvest, lower commodity prices and express faster, so as to drive growth and further expand the scale advantage.

Therefore, when I consider every investment in the field of e-commerce, we must carefully assess the risk of competition from Amazon. It is not a heavyweight. It is a heavyweight champion all over the world.

So how can we compete with Amazon?

Of course, the first thing is to sell differentiated products. Amazon sells a lot of hard goods, such as multimedia, electronics, household appliances, toys, horticultural products, etc. most of the best sellers are produced by large manufacturers and are promoted through various retail channels. And for most commodities, the key difference is price. Consumers know that Amazon almost always gets the lowest price. Freight is free, and it is fast.

As a result, many retailers try to "open the road and occupy the hatchback" and sell in the weaker areas of Amazon. "Soft goods" is a choice.

Amazon also wants to do well in this business, but at present it has not yet achieved its dominance in the field of hard goods. NastyGal before Amazon was bought. Clothes & Accessories Website), Zappos (known for sale in the US) shoes The website, Nodes Tron, Nordstrom and Neiman Marcus, all successfully implemented the strategy of "soft goods" and successfully survived the competition with Amazon. There are also opportunities for home retailers in this field. Some furniture products are "what I need today", and some of them are not suitable for online shopping.

Many retailers compete with Amazon by developing their products directly. Because these products are exclusive to retailers, they can generally avoid direct parity, while companies producing these products can also choose to prohibit other electricity suppliers from selling. Many excellent offline chain companies have adopted this strategy, including Lulu lemon (Lululemon) and Vitoria's Victorias Secret and other famous brands.

Although the design and development of their products cost more energy, retailers generally get higher gross profits because they avoid the cost of intermediate links and avoid tough price wars.

From the core point of view, Amazon website is a product search engine. When consumers know exactly what they want to buy, Amazon can be said to be the most powerful, and many consumers are using their search box. Selling things on Amazon is almost entirely based on algorithm rules, such as searching for a and B and C at the same time. Few people use traditional marketing semantics to browse products on Amazon.

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Many companies are building an excellent browsing experience, using a very attractive display method to show consumers a series of directional selection products, so as to compete with Amazon. Many offline retailers also attract customers through beautiful display windows. Now, a group of new type of electricity providers also use this method, but their practice is often referred to as "Planning Exhibition". Price is not the first factor that consumers should consider when impulsive consumption is consumed by consumers.

Compared with Amazon, the entity store has some inherent disadvantages due to rent, staff, inventory cost and other reasons. However, many offline businesses are trying to take advantage of weaknesses and make full use of local store networks. For example, WAL-MART (Wal-Mart) allows customers to pick up online shopping products on the same day when they place the order online. During the holiday season last year, WAL-MART launched a pilot delivery of online orders on local stores in several US cities. These two approaches have taken advantage of WAL-MART's huge inventory advantages and its ubiquitous geopolitical advantages. Moreover, WAL-MART also creatively tries to package its local day delivery business to WAL-MART customers in crowdsourcing. These customers who deliver WAL-MART will receive the corresponding discount when shopping.

Williams-Sonoma, a household goods retailer, has built its own online business using its physical stores and product catalogues. They are willing to build e-commerce platforms to compete with themselves because they believe that if they do not, others will do it. Now, more than 40% of the company's revenue comes from online channels.

Obviously, e-commerce has a high competitive advantage compared with physical retail, and e-commerce will no doubt continue to grow. Therefore, more worthy of consideration is how other electric business enterprises should compete with Amazon.