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Amazon...How They Did It

In December we talked about how specialty retailers might strategically compete with Amazon. It strikes me that it might make sense to analyze how Amazon has embedded itself in the mind of most consumers, including yours.

INFORMATION. One of the things that specialty retailers claim to use as a defense against Amazon (any competitor for that matter) is knowledge. In our business, the strongest claim of course is install capability and skills. “We know how to properly educate a consumer” is perhaps the second strongest tool claimed by the specialty retailer. Let us focus on this idea. Specialty retailers know many of the intricate details that make a back up camera, audio system, Bluetooth, smart phone integration, etc… work properly. Often specialty retailers use this information to differentiate themselves from such on-line competition as Amazon. For sure, this is a great strength for specialty retailers and should be used often and with great conviction.

That said; take this small “mother-in-law” survey with a few of your family members, friends, customers or just plain strangers. Ask the following questions in this order…

  1. Do you buy from Amazon?                  If yes, proceed…
  2. Do you trust Amazon?                          If yes, proceed…
  3. Do you find the information at Amazon you need to make an informed buying decision?                                                                              If yes, proceed…
  4. Does that information come from the Amazon product page, user reviews, forums, third party resellers?

Not being a betting man, I’ll wager my left arm (not my right arm) the answer to question 4 includes at least two of the choices if not all.

The point is that Amazon aggregates a great deal of information specific to an item and delivers access to that information in a form comfortable to almost every Amazon shopper. Then Amazon offers a very low pressure add-on/alternative opportunity in the form of “other people who purchased this also looked at…” Then Amazon takes information delivery even further by offering the Amazon shopper other resellers than Amazon from whom the shopper may choose to make their purchase.

All of this information is available to the Amazon shopper, inside of the Amazon environment, in a very digestible and non-intimidating format. The consumer can choose to go as deep or as shallow in their information gathering endeavor as they are comfortable with.

The specialty retailer counteraction…

Qualify. Qualify. Qualify. Provide the consumer with exactly the quantity and quality of information necessary for the consumer to feel like he is capable of making an informed decision. Be in a position to go to the “Nth degree” of detail IF the consumer indicates he needs that detail to make an informed decision. BUT don’t try to “dazzle him with your foot work” or baffle him with big words or BS him when you are not sure. When you’re not sure, it’s best not to instruct your consumer to look it up at the factory web site. The factory is likely to take your consumer to another place to purchase. Better you should find and deliver the information to the consumer in a way that he is comfortable with.

If you don’t take this course of action, it’s OK.  Your consumer can get the information at Amazon.   

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