Amazon’s Biggest Shopify Challenge - Positioning
Let's continue on the Amazon Shopify discussion for a moment and talk about Amazon's biggest challenge: positioning.
"As a merchant, how do I think about Amazon's Store offering relative to my current store - is it a replacement?"
I feel Amazon's store offering will not be a replacement. In sales, the hardest sale to make is a replacement sale. You never want to do it. You want it to be easy. How can you give 3 million Amazon sellers a store? What % have a store today because they don't want to figure out advertising. Quite a large number.
I think there could be several new advertising offerings to come with their new store. Also, Amazon needs to combat the struggles of brands on the platform.
Which is to say: - Amazon is not going to be competing head to head with any existing store, out of the gate. It's more, step one is to prevent lower end stores from diversifying on another platform. And step two is to enhance brand presence on Amazon by offering a multi-channel content hub.