PUBLISHER’S NOTE I
nteresting times these. As the world falls further out of love with Amazon, myriad marketplaces are stepping up to woo both
merchants and end customers. A fair few of these competitors are on the way to developing into significant players, raising funds from canny investors, and extending their reach into new markets. What differentiates them most from Amazon is the absolute pledge never to compete with their merchants, which has been one of the most irritating bugbears for businesses selling on Amazon. It is hard to accept that demand is being monitored and products assessed for their viability for ‘house’ brands and the swathes of Chinese sellers who can emulate products in a trice and undercut even the most competitive of businesses. It is this sheer unfairness as well as the often eye-watering fees that make Amazon’s business model uniquely questionable on moral grounds.
Add to this the way in which Amazon sidesteps its tax liabilities then no wonder that merchants are seeking alternatives with more ethical business models. It is also why more merchants are developing their own marketplaces via brand and white label partnerships. Nor is the developing world of marketplaces limited to DTC offerings, with increasing number of trade only options springing up to link producer and wholesalers with small retailers, often also providing
credit. With live tradeshows having been paused, there are numerous initiatives trying to plug this gap.
The ones to watch right now are Next with its Total Platform development which complements its third- party brand Label offering. This looks set to fly and is already pulling in brands which have rebelled against the punitive fees which John Lewis has recently seen fit to impose on its online concession brands. Given JLP’s faltering performance and fall from grace most will surely fare far better with Next. Then there is OnBuy – a British business – which with newly secured development funding will be focused on expansion, and other operators like Fruugo who offer a relatively painless route for UK merchants wanting to enter smaller markets (non-Amazon dominated) in Europe.
Beyond this, there is a world of partnership opportunities yet to be developed between merchant businesses and others which will provide significant mutual benefits. If ever there was a time to be open minded and ready to explore new routes to market, to new products and new profit streams it is now.
JRH
Don’t waste time pondering – there is a great job waiting for you.
... 4
expertregister@directcommerce.biz
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