Distribution Is a Cost of Doing Business
The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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Private Label Pulse was our first-ever event. The event hosted four talks on the future of private label, advertising, international expansion, inventory performance & health, and - of course - Amazon.
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The Walmart marketplace is frustrating because it is two different experiences sharing one website. CNBC broke the news that Walmart is working on fixing this. Walmart is finally addressing the flaw which existed since the marketplace inception in 2009.
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Most often Amazon marketplace is described as "there are currently more than 2 million sellers on Amazon worldwide." The 2 million figure has become common speech. But it is wrong.
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Amazon wants to replace trust in brands with algorithms. Instead of consumers picking the brands they trust, Amazon wants them to pick products recommended by the algorithm. But what if Amazon is wrong?
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As more Amazon shoppers convert to Prime members, successful sellers have to do what those shoppers expect. Thus more sellers use Fulfillment by Amazon every year - today 69% of the top sellers on Amazon use FBA.
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As we celebrate our third birthday we are taking a look back at all of the things we have built since. The market of e-commerce and the surrounding ecosystem Amazon has created is fascinating, we are glad to be in the midst of it all, working on picking it apart.
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In Greek mythology the Hydra is a nine-headed serpent like snake. It was said that if you cut off one hydra head, two more would grow back. This perfectly describes the counterfeits and fake products issue on Amazon.
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The Buy Box is as old as the Amazon marketplace and is built on a core principle which has survived for decades - many sellers can source the same product. But today the Buy Box sounds increasingly less relevant.
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It's not enough to make a product. There are more products and brands being launched every day than the number of customers grows on Amazon. Hence advertising on Amazon is no longer an option, but a requirement.
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