Sunday October 25, 2020 |Future of ecommerce

Quality brands will flee Amazon marketplace

Quality brands will move away from Amazon. The benefits of the marketplace no longer outweigh the great costs associated with letting Amazon devalue brands over time through negligence of restricting knockoffs, adhering to brand guidelines, and continually playing to the company's ethos of being the world's most customer centric company.

Amazon has been extremely successful at adhering to its original goal of being the most customer centric company. Nearly every move the company makes can be look at as being customer-friendly at least in terms of costs and satisfaction. That same goal puts the company at odds with marketplace partners.

Most of Amazon's retail sales come via third-party marketplace sellers. Each seller looks at Amazon as a vital channel, while Amazon views each seller as easily replaceable. There's always another brand that will push prices lower, change to meet Amazon's requirements and put Amazon's customer first. That doesn't work for brands that have earned reputations for being great in very specific areas. Most companies cannot target everyone as a customer and it's acceptable to make tradeoffs to make the very best products for the dedicated few.

Many reputable brands have already moved away from the Amazon marketplace. That will continue, even as Amazon attempts to lure luxury brands. Amazon is designed to deliver anything quickly and cheaply to anyone - not to discerning shoppers looking for the small differences. Many capabilities of the marketplace can be replicated with third party solutions, and customers have shown eagerness to look beyond Amazon.

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