How much does Amazon commoditize products?

Amazon has essentially commoditized a large number of products. When shopping Amazon, each listing looks nearly the same, with each element of the listing suiting Amazon’s policies. This changes how products are purchased, as discussed in a recent post by Benedict Evans, “TV, retail, advertising and cascading collapses” Benedict Evans writes (as we recently covered):

“As buying goes online (regardless of how much the previous points happen at all), buying patterns change. Really, whenever you change the channel, buying patterns change – people do not buy the same in malls as in department stores, nor in department stores as in small shops, and so people do not buy exactly the same things online as they do in supermarkets or malls.”

On the MarketplacePulse post The Channel Shapes What Is Bought, the question of a premium brand selling on Amazon was raised:

For a brand like Nike selling on Amazon is a headache they’d rather not have to deal with. But like many brands they don’t want to completely miss out on it, so – rather unenthusiastically – they give in. But when customers go looking for Nike products on Amazon.com, do they buy Nike products, or do they buy something else? That is, are brands attracting their customers to Amazon.com who then buy something else?

Is Nike, by giving in to sell on Amazon, and thus by allowing customers to find their products there, in the long-term slowly loosing market share to other brands who are also on Amazon. For a brand like Nike this will take decades to have any affect, but for smaller brands the effect will come sooner.

It’s tough to ignore Amazon, which is why we typically advocate for independent ecommerce businesses to leverage Amazon, while also working to build their own direct communication and sales channel with their customers.

Andrew @ EcomLoop
Are you looking to start or grow a standalone ecommerce shop? I help independent businesses achieve success on the Shopify and WooCommerce platforms. As the owner of multiple ecommerce businesses, I've had the opportunity to get experience with nearly every aspect of the ecommerce industry. I started EcomLoop to help other quality independent businesses using my knowledge and experience. To stay on top of new ecommerce developments, I publish The EcomLoop Weekly Loop, a blog and email newsletter with original thoughts and curated links to help independent businesses improve their businesses.