![]() Yet brands face real challenges when selling on the platform-from competing products, third-party sellers, and even from Amazon itself. All these factors make Amazon an essential-and to some brands, a seemingly mandatory-place for companies to, as the saying goes, “meet the customers where they are.” As former Gap CEO Art Peck put it, “To not be considering Amazon…would be, in my view, delusional.”Ĭhoosing the Right Platform for Your Brand: Series reprint Its fulfillment speed and service quality are trusted and loved by consumers. consumers start their product search on Amazon. Amazon ships products to more than 130 countries, and it is the dominant online retailer in 28 countries. “This is a middle finger to all brands, not just Birkenstock.”Īmazon is the most visited e-commerce platform in the United States, with nearly 3 billion visits a month, 200 million global Amazon Prime members, and about $400 billion in annual revenue. Later, in an interview, Kahan framed the situation this way: “This is modern-day piracy,” he said. “Any authorized retailer who even a single pair will be closed FOREVER,” he wrote. ![]() ![]() “Policing this activity internally and in partnership with has proven impossible,” Birkenstock said in a statement, calling the platform “an environment where we experience unacceptable business practices that hurt our brand.” A few months later, when the company learned that Amazon was reaching out to its authorized resellers to convince them to sell Birkenstock shoes on the site-a direct violation of the reseller agreement-Birkenstock Americas CEO David Kahan fired off an email to all the company’s sales partners. In Birkenstock’s view, Amazon wasn’t doing enough to prevent counterfeiting. In 2017, after years of partnership, Birkenstock Americas announced it would stop selling on the site because too many counterfeit versions of its shoes were being sold by Amazon’s third-party sellers. But for the past several years, executives at the German-based footwear company have been anything but chill when it comes to Amazon. People who wear the Birkenstock brand of cork-and-leather sandals have a reputation for being laid-back-hardly the type to pick a fight. The Way ForwardĬompanies that choose to sell on Amazon will need to make smart decisions about assortment offerings, page design, and fulfillment options so that they can take advantage of its scale while protecting the long-term value of their brands. The scorecard in this article helps brands determine whether the benefits exceed those costs by examining things like ease of shipping, need for customization, distribution issues, and counterfeiting concerns. They include smaller margins, more competition, the risk of commoditization, and less knowledge about customers. Selling on Amazon allows brands to reach millions of consumers-but that exposure comes with costs.
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