The Hidden Dangers of Outsourcing Your Sales to Amazon

More and more companies are choosing to use Amazon for their e-commerce operations.

They let Amazon control how their products are presented to customers, how they are sold, how they are packaged and how they are delivered.

There are several benefits to this approach.

The company doesn’t need to significantly invest in all the technologies and people required to create and operate a secure and scalable e-commerce store.

There are also several disadvantages.

A critical part of the customer experience is outsourced to Amazon. The customer could decide not to purchase or never purchase again due to the Amazon customer journey from selection to the moment they receive their order.

A treasure trove of data that drives predictive and behavioural analytics is handed over to Amazon. Coupled with Amazon’s voice-controlled devices this presents an enriched gold mine of semantical and syntactical analysis to identify real-time trends and opportunities to surface to customers what they want or may want, rather than wait for the customer to ask for it.

In a world where the customer journey and the sales, marketing and service process is no longer linear, this data becomes incredibly valuable. This data powers unique insights that enable Amazon to favourably position their own brand products or suggest to start-ups that they create products to fulfil an untapped demand.

Maybe customers just don’t care, they just want their product and this is where to get it.

Maybe companies just don’t care, they just want the sales and need to be where everyone else is.

Maybe Amazon has become the global virtual hypermarket of the masses.

Maybe we will see the first just-in-time physical hypermarket that uses online data to dynamically position and price products in-store based on real-time data.

Maybe customers and companies will care when the data is used for other purposes beyond the retail experience.

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