Thursday October 15, 2020 |Notes

Steamrolling ahead with little excitement

There are exciting innovations occurring in digital commerce. Much of the innovation is unseen by the masses, as Amazon and other big tech leaders no longer lead the way by dazzling with exciting new features. Rather, big tech is steamrolling ahead, expounding growth by delving into new markets, while looking to steamroll competition in existing markets.

Big tech is getting bigger in midst of the pandemic because more people are moving to use the limited services available. There's no denying that Amazon and other big tech companies make great products and provide quality services. The innovations at this point are marginal. Products can come slightly faster, the catalog can grow larger, but the innovations are limited because there's no need or desire to do more.

Marketpace Pulse, which follows the Amazon Marketplace closely, noted how Prime Day will break records, but not because of new features:

Thus it is telling to see Prime Day continue to grow despite not innovating on the user experience - it is important to notice the things Amazon chooses not to do. ... Prime Day is not indicative of any future trends in e-commerce. To many, it is the opposite of what they believe the future will look like. Prime Day is an event by the largest online retailer that attracts shoppers because it is the largest online retailer. In turn, Amazon reaches record sales, many third-party marketplace sellers double their daily sales volume, and some shoppers find great deals. It’s a win for everyone, except for other retailers that lose out on traffic. ... The best Prime Day deal is the one Amazon gets by having many of its Prime members coming to Amazon to check if there is a deal they like. If they don’t, there is a high chance they will buy something on Amazon anyway. That is why many more products get a sales lift than just those offering deals. Prime Day’s goal is to remind people to open the Amazon app.

At one point, Amazon lead the way in ecommerce innovation. While the marketplace can grow, the site is not made for discovery or to delight customers. It's always been intended for customers with an intended purchase, rather than for browsing for enjoyment. There's more innovation happening to ecommerce off Amazon, where ecommerce continues to meld with content and audiences on a multitude of platforms.

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