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5 Ways Manufacturers Can Compete Against Amazon

Reading Time: 3 mins
By Published On: November 13, 20190 Comments

E-commerce behemoth Amazon has trapped manufacturers into a corner. Brands are now being forced to choose between an Amazon partnership or become their competitor.

Brands that sell their products on Amazon can significantly boost their sales but there is a cost. Such as giving the marketplace in-depth information about manufacturing processes, and personal information about customers.

While Amazon Australia only launched in late 2017, this region is the company’s fastest-growing marketplace. Earlier this year, it was announced Amazon Australia generated $260 million in retail sales during 2018 and it’s expected this figure will double in 2019. Not unsurprising with 100 million products available across 29 separate categories. And there are already tens of thousands of sellers online – an astounding figure given the Australian company launched with 560 sellers just two years ago.

Nevertheless, many brands are wary of jumping on the bandwagon.

What These Consumer Trends Mean For Brands

  1. Amazon does not lend itself to direct-to-consumer shopping behaviour:

    Brands need to be aware that entering Amazon’s seller program might attract new customers, but eventually luring them to buying directly from their own website is highly unlikely.

One important aspect of shopper behaviour is that within marketplaces, such as Amazon, customers look for competitive price and selection. When they are shopping directly with a brand, on the other hand, they are looking for service and a positive, personalised customer experience.

Recommendation: Brands should create a strategic map of their customer’s shopping behaviour and align their marketing strategy to match.

  1. Brands need to captivate their customers:

    A survey called Shopper-First Retailing states that 50 per cent of consumers still prefer a retail channel for their first-time purchase. This gives brands the opportunity to captivate their customers by executing an emotional and memorable product experience.

Recommendation: Provide seamless and consistent online-to-offline experiences, because customers expect the same type of experience whether they’re shopping on their phone or laptop or in a brick-and-mortar store.

  1. Amazon’s size is, in itself, its weakness:

    Amazon is the ‘everything’ store. The win for brands is that the variety of choice can make it difficult for customers to distinguish one brand from another.

Recommendation: Brands need to build their own distinctive brand and following. Through consistent, high-quality product content, brands can outshine Amazon in terms of providing a better product-centric customer experience.

  1. It’s not about the price:

    A smart strategy should not compete on price alone. Brands can use Amazon’s own data against them. While price may be the number one reason shoppers use Amazon, convenience and brand consistency are close second and third motivating factors.

Recommendation: Brands should focus on adding value to their products and services. This can be done by offering something completely unique or by giving memorable experiences, such as free delivery, painless returns, rewards or subscriptions. A side benefit is that customers delighted by exceptional customer service are far more willing to offer recommendations and reviews.

  1. It’s about the product experience:

    Strategies 1-4 really come down to brands providing accurate, complete and up-to-date product information that makes for outstanding product experiences. Organising, curating, and publishing high-quality, consumer-facing product content requires several things such as executive buy-in, mindset overhaul and technology investment.

Recommendation: Brands should consider their technology stack and how it addresses the product experience. Product Information Management (PIM) is the process of collecting, maintaining and publishing up-to-date and consistent product information. A PIM solution enables easy management and publishing of product information and digital to ensure that product content is delivered to the right channel, at the right time.

Brands who truly want to compete with Amazon should consider solutions that provide not only accurate content to customers, but personalized recommendations. In order to do this effectively, brands need to know who their customers are, what they want and how they shop.

Contentserv has launched a new ebook: Manufacturing in the Digital Age – How Data is Driving Your Business to help you learn:

  • Data and the critical role it plays in technology
  • The first stop in your digital transformation journey
  • Key challenges and solutions for brand control and consistency
  • Why product content is the cornerstone to D2C success
  • How contextual content creates groundbreaking product experiences

To access the eBook please click here.

If you would like to know how Contentserv can help you with your product experience, feel free to contact us.

Sascha Reppel is a dynamic leader within the omnichannel and marketing automation area with sound experience delivering successful international and regional business solution rollouts within SME and Enterprise environments. He’s currently managing the launch of product experience platform provider, Contentserv into the Asia Pacific region.

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About the Author: Power Retail

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