Business Matters
How to build a business that can compete with Amazon
The rise of e-commerce giants like Amazon has transformed how brands engage with consumers and Amazon ‘owns’ the largest share of the pie. Electrical equipment is one of the many industries that has become heavily commoditised in recent years, enabling Amazon to move in quickly. Paul Black, CEO, sales-i, offers some advice on how electrical wholesalers can compete.
I
t’s tough trying to compete, and some companies will choose to work with Amazon, rather than set up their own e-commerce platform. But what about those other product-based companies
that are entering the e-commerce world on their own steam? The reality is that many are struggling to keep up. And this goes for businesses across all industries, including those operating in the electrical equipment industry. The problem is that these businesses are trying to compete with
Amazon. Given its reach and resources, this approach is unlikely to work. You’ll simply overextend yourself as you try to outdo Amazon on every new product and price – and in the process, forget about your number one priority: your customers. That’s not to say you can’t learn from Amazon and imitate certain processes and ideas, but they need to be relevant to your business needs. A good place to start is to research Amazon’s success, review your current business model and look for areas that can be adapted and even improved. Part of this process is also about identifying which bits of your business
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work really well. What are your strengths? And how can you enhance them to really differentiate what you do from your competitors? Don’t try to be like Amazon, but rather build your offer so that it stands out in a crowded marketplace. Here are five focus areas to help your business drive sales and hold its own against the likes of Amazon.
1. Review your distribution channels How you get your goods from point A to point B is crucial to your success as an electrical wholesaler. Your distribution network needs to operate like a well-oiled machine that delivers your products on time and in good condition. Reliability and speed are key to keeping sales consistent, as well as winning new business. It always pays to keep a beady eye on your processes and partners to ensure that turnaround times are as efficient as they can possibly be. If you haven’t reviewed your distribution channels recently, do so. Chances are you’ll spot some sensible ways in which you can reduce costs and improve efficiency.
●Continued over October 2018 electrical wholesaler | 37
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