In the retail sector, hardly a day passes without Amazon receiving a scolding. There's talk of "unfair conditions" or a "near-monopoly". Whoever complains has to clean up his own backyard. The failure of online competition is self-inflicted. The good news: There's plenty of room for improvement.
Do you make $ 44 million while you're sleeping? If so, you have a lot in common with Amazon CEO Jeff Bezos, who earns $ 133 million a day and has total assets of around $ 100 billion. Ultimately, with tens of billions of revenues in the USA alone, Amazon is the most successful online platform in the world. In addition, the group is increasingly penetrating our everyday lives – for example with the voice assistant Alexa or the Kindle and fire devices. Don't worry if you're not blessed with this kind of success. Just unpack the slingshot and stand up to Goliath.
Let us have a look at the status quo: Amazon does something bad, the others do it even worse. Here are just a few of the shortcomings that you could eliminate to distinguish yourself.
The list of shortcomings could be extended indefinitely – also in the areas of logistics and personalization. Why is Amazon getting away with it? Well, it's the one-eyed man amongst the blind. If it wasn't for this one exception...
November 2017, China, Bargain Day (Single-Day). Online retailer Alibaba makes total sales of $ 25.3 billion ($) within 24 hours. This is 40 percent more than in the previous year, 256,000 transactions per second using the company's own electronic payment system Alipay. 90 percent of orders are placed via smartphone. Dare someone say that Amazon leaves no room for competition.
The example shows what it's all about: reaching shoppers where and how they like to buy. In this case via smartphone and with a barrier-free payment process. In other words, "lead through technology". This is exactly what spelled the end of mail-order retailers such as Neckermann and Co.. While the customers went online, the flagships stayed with well-tried processes. Catalog and phone were to mail order companies what the combustion engine was to the auto industry.
You might think that the companies would have learned from it. Well, no! To date, customers should consider themselves lucky if they can shop on a website that is at least mobile-optimized. Let's not even talk about the customer journey. But everyone should know by now: Mobile comes first! Amazon itself looks bad when it comes to the mobile shopping experience. But again: If you have the choice between the devil and a shallow blue sea, you might go for a swim.
Amazon is fallible. And: Now is the right moment to attack. Because new transport technologies (drones, self-driving cars) and the increasingly important artificial intelligence opens up new opportunities for everyone. Change to the fast track by consciously using data to reach your customers through tailored communications, automate fulfillment, and deliver products to any location on demand.