With a finite capability to meet the demands of today’s “I want it now” consumers, retailers need to consider what matters most - is it speed, convenience or free delivery?
How to Compete with Amazon
Amazon is one of the largest and most diverse online businesses in the world. Its impact on online retail (and soon to be) B2B sectors is greater now than ever before. In this video Mark discusses how to you can play to your strengths in order to compete with online giants such as Amazon.
- Match Amazon at what they’re good at-products, prices and delivery
- Win with good service and meaningful relationships.
- Your brand is your USP
How do you compete with Amazon? Well first and foremost you have to match Amazon and you have to match them at what they're good at so that of course means great products and great prices and it also means and in particular with Amazon matching them on their delivery promise as well because that represents great value for customers and that inevitably means putting in place the right technology within your business and building the correct technology platform so that you can have all the efficiencies within your organization that Amazon has.
Actually how you beat Amazon is actually a slightly different question and I think it's an omni-channel answer to Amazon's single channel- so what do I mean by that? I think it's all about service and a service can mean many different things so it could mean bricks and mortar or in wholesale it could mean branches where you can see products you can talk to people ask questions it can offer Click and Collect capabilities so that your business can continue to be to be fluid.
But in my businesses I find that the service means more than that it means actually having great sales reps, traditional reps who understand their customers and their product requirements understand the history and how previous products actually fit with the latest product enhancements and but it also means call center as well I think- an undervalued resource in wholesale and distribution is actually the call center rep where they again know their customer base and they know that their product they've bought before and they in the future and they're able to offer those and they're able to offer advice over the phone. It's just that relationship which is incredibly important and there's this old adage that people buy off people and I think is true and that is something that you should invest in.
And I guess the third way of competing and beating Amazon is with brand I've seen more wholesalers and manufacturers concentrating on having their own brand identity and then keeping it as their USP so don't dilute the brand by placing those products in marketplaces whether it be Amazon or eBay or anywhere else keep it as your own brand that you can control because that is your USP.