This is a guest post by Andrew Youderian of eCommerceFuel.com
Few companies can strike fear into the hearts of the owners of a virtual store like Amazon does. For its massive scale and focus on growth in earnings, allow Amazon to offer prices that most small businesses can not compete.
As an entrepreneur in ecommerce for me would be easier to hate Amazon if this is not because it is an extraordinary company. Unlike many large organizations, it cares about providing a quality service. And if you’re a member of Amazon Prime – like me – get free and fast shipping on almost anything you want.
So how can small companies like us compete against a giant so attractive?
With its large Amazon can benefit from economies of scale, but a wide range can also be a weakness. With so many products for sale, it is impossible that Amazon can offer expert guidance.
The founder of SonicsOnlin and Dave Huckabay has taken the opposite approach, choosing to become an expert in handling your catalog e – commerce site. It focuses exclusively on selling ultrasonic cleaners for use in jewelry and industrial, a niche that most people probably do not even know exists.
By taking a product that is in place and in the Amazon: Ultrasonic cleaner GemOro jewelry. It is seen that the article in Amazon costs approximately $ 67.95 and $ 120 SonicsOnline almost double. However, he manages to sell well in the shop Dave.
So how can you compete with Amazon SonicsOnline? Although it has a professional design, SonicsOnline page is full of information, including videos, manuals and well detailed specifications. Perhaps the most important time is that customers know they are buying from a company that has experience in your niche and can provide specialized to solve specific problems questions and help.
The combination of information and experience is powerful and has helped grow SonicsOnline approximately $ 300,000 in annual revenue. When asked about successfully compete against Amazon, Huckabay said:
When you become a true expert in your niche – you can pass it successfully through your ecommerce store – and you ‘ll be better prepared to compete against Amazon, without having to rely on their prices.
Creating your own products is undoubtedly the most difficult (and most expensive) way to start in e – commerce. But if you have an idea and resources to carry it out, it ‘s probably the best way to build a highly profitable and successful business that can compete against Amazon.
Ask Dan Andrews of ModernCatDesigns.com . He and his partner Ian Schoen were surprised at how expensive it was ugly furniture to cat, so they decided to create their own line that matched a modern house. Here is his popular “cat litter box ‘:
One of the biggest advantages of making your own product is that you can dramatically improve your profit margins, leading to increased profits and growth opportunities. While small resellers do not have enough margin to advertise profitably, the pay-per-click strategy has been an integral part of helping Modern Cat Designs, which are growing approximately $ 120,000 in annual revenues, despite having a catalog of eight products.
Perhaps best of all is that you have control in the manufacture and control of product distribution to establish guidelines for price s to protect your margin. On compete with Amazon and how they affect prices, Andrews said:
Creating your own product is not for everyone, but it’s a great way to compete successfully against Amazon.
By connecting with the core values of your customers, you can build a base of loyal and passionate customers that is not based solely on price. A quick search on Amazon reveals that more than 330,000 different types of shoes are on sale. However, Tom’s Shoes has built a successful business based on the premise of donating a pair of shoes for every pair sold.
Hipcycle.com is another site with a deeper purpose: reducing waste by selling products made from material previously discarded. The concept, called “upcycling”, is used to make bicycles something else and a computer in a lighter unit. Here is one of its most popular products, glasses Gray Goose Vodka rocks:
Founded a year ago by Andrew Sell, the company already has two full – time employees and a significant presence on Facebook.
When asked how Hipcycle has positioned itself to compete against Amazon, Sell he said:
Take note that did not mention the option of fast shipping or incredibly low prices. Instead, Hipcycle connects customers with a deeper purpose – something that can not be found on Amazon.
Amazon’s rapid growth, and the power of the low prices make online is recognized. But despite their significant influence, it is still possible to succeed as a small trader. Just be smart about how to put your business in the market.
So how can you compete against Amazon? Let us know in the comments.
Written by Andrew Youderian. For more information about how to compete and succeed with Amazon, download the book for free from Andrew related to the growth of a successful e – commerce business. You can also follow him on his blog, eCommerceFuel.com .
Amazon in my country, no shipping, I will have a good shipping in just three days, you do not have them, and I will have the same prices, paying in local currency.
Maybe not a big deal but I will use them as an example by improving their methods or perhaps doing the same function but differently.
Last week we awoke to the news that in France a new law passed by the Senate tried to punish Amazon and protect small independent booksellers.
I do not believe in state intervention to resolve problems of free competition. Spain Services in Spain Amazon has sales of 64 million and a loss of 23 million. That is selling well below their costs and perhaps interventionism in this case would have its reasons.
I still believe in free competition and to compete against them but uniting all electronic stores http://bit.ly/1gzkkiI
Thank you Jose and Txema for your comments. I think your points are completely valid and noble of the e – commerce environment, which offers free competition always thinking about the customer, which ultimately is the one who decides who to buy. As they say: “we must take the good from every experience and always improve” Greetings to both.
Unfortunately, Mr. before saying that Amazon sells 64 million and lost 23, it is a mere mockery of Spanish public finances. THAT IS SIMPLY LIE AND FINANCE KNOW, ELSE IS NOT know how to fix Teasing. regards
How small e-commerce companies can compete against Amazon
This is a guest post by Andrew Youderian of eCommerceFuel.com