Will you and your brand be squeezed out?
Back in the day, the product was yours – or your competitor’s – and the selling platform was Amazon – online-retail heaven.
Then, for a while, the product was you. The platform analyzed the successful sellers on their platform. Then, they sold the resulting market data to big-spending companies.
You are the mine for somebody else’s data
Remember how you would look for a product on Amazon? Seems like you found Amazon reselling a brand, or you found a little private reseller using the Amazon platform to advertise, and to provide the shopping-cart, and to also fulfill your order?
Now, you look for a product and it’s likely you will see an Amazon private-label version. As the 800-pound gorilla, Amazon can edge out the “little guys”, or even the really big guys. Because the at-risk vendors are trying to sell the same product, on the same market platform, Amazon can certainly sell for less. If you are that little guy, Amazon might be using your
- energy and
- efforts and
- advertising and market-building investment
to test the waters for their own next Amazon Private Label product. Will you be squeezed out next?
Where does that leave you?
Perhaps you are paying Amazon for information about customer behavior, preferences, trends. Are they are keeping the juiciest competitive-advantage data to themselves?
Will Amazon squeeze you out of your own hard-won market niche? Read on, for Marcia Kaplan’s take on this hot topic.
Will Amazon’s Private Labels Squeeze Out Smaller Brands?
Amazon is aggressively expanding both the number of private label goods it sells and the product categories it offers. Besides dominating online sales, Amazon is the source of over 50 percent of all online product searches, surpassing Google.
Amazon’s private label strategy is simple: it offers the lowest prices on quality products, often knocking smaller merchants that have only one or two offerings out of the market.
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Author: Marcia Kaplan
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Marie Watkins is the creator & author of FreedomLab, a resource site where we do the research for you and find the best tools and methods for you to grow your online business.
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