Updated: Dec 28, 2020
This week NIKE has confirmed that the company will be taking its products off of Amazon.com in an official statement:
"Amazon is just a traffic aggregator that reduces friction in consumption," Jefferies analyst Randy Konik told CNBC on Wednesday. "It doesn't build communities."
That's become the crux of Amazon's problem in 2019 - it doesn't let its brands brand. It doesn't build communities, it doesn't stir movements.
More and more brands are leaving Amazon seeing their revenues diminish due to Amazon's high commission fees for sales (sometimes 30% of sell price!).
NIKE had brought AMAZON nearly $34 Billion in sales in 2018. Small compared to Amazon's net of $232.9 Billion yet still a cause for concern in Amazon's eyes. The retail giant is finding that inherent in its structure is a major flaw: it doesn't built brands.
“That's become the crux of Amazon's problem in 2019 - it doesn't let its brands brand. It doesn't build communities, it doesn't stir movements.”
So how does an e-commerce brand take advantage of Amazon? First let's get rid of the common myth that Amazon is taking all the sales online, it isn't. Not at all. Actually, it's created a desperate audience of buyers looking to buy from brands.
Focus on your branding!
(PRE-BUILT mentorship tutorials marketing)
Your brand's branding is what sets you apart from everyone else. Not just your logos and themes, but also what your brand stands for, and what it supports.
With many small and large (NIKE) brands leaving Amazon to create their own shopping experience, it's a matter of time that independent businesses takeover a much larger share of e-commerce sales.