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Selling on Amazon: success factors in eCommerce after Wirtz

Science has also studied how to sell successfully on Amazon. An overview.

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The risks are homemade by Amazon

In this post I will be the Success Factors in eCommerce according to the models of the eBusiness experts Wirtz and Heinemann. I tried to connect the current success and differentiation factor models according to Wirtz and Heinemann directly to the Amazon Marketplace.

The risks in this Business Model are mainly specified by Amazon and can hardly be influenced by the retailer himself. In particular, future process changes by Amazon represent an incalculable risk component for the retailer, since process changes can always be associated with costs that are passed on to the retailer.

Opportunities and risks for online retailers

The scientific model of Dr. Bernd B. Wirtz, expert in e-commerce at the University of Witten-Herdecke, is to bring the advantages and disadvantages of the marketplace to the (potential) online retailer.

This also shows directly the opportunities and risks that can be derived for the online retailer as a possible business founder when selling via Amazon.

Success factors are system-immortal

Thus, success factors or differentiation factors exist, which are largely provided by Amazon as a service provider. Other factors, however, are made more difficult or even obsolete by using the Marketplace.

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Lastly, there are numerous success and differentiation factors that the online retailer should pay attention to in order to be able to experience sustainable success with the Amazon Marketplace.

ContentEffective presentation of products and services
ConvenienceDevelop a user-friendly and intuitive website
ControlExtent of independently controllable processes
InteractionBuilding and maintaining individual customer relationships
CommunityEstablish and maintain relations with like-minded individuals, groups or organizations
Price SensitivityThe pricing competence for products and services
Brand ImageBuilding a reliable brand in e-business
CommitmentA strong motivation for Internet use and the desire for constant innovation
PartnershipExtent of the use of partner relationships in the value added, in order to expand the Internet presence
Process ImprovementThe company's competency to adapt and automate business processes
IntegrationSupporting the partnership and process improvement through the underlying IT systems

Success factors of strategy implementation according to Wirtz

The success of an eCommerce business start-up using the Amazon Marketplace depends largely on the specifics Company , as well as various environmental conditions, but fundamental factors and parameters can be identified, which, if they are known and observed, the eCommerce success can be sustainably increased.

Here Wirtz focuses on the strategic elements that are to be implemented in the business model in order to establish a sustainable and successful business model and to reduce the susceptibility to crises. The table above shows this clearly.

 Transfer theory to Amazon

If the strategic success factors shown in the table according to Wirtz are transferred to the business model of the Amazon Marketplace, the success factors Convenience, Community, Partnership and Process Improvement for the dealer of Amazon are taken over, see orange coloring in table.

Thus, the marketplace retailer only has the task of concentrating on providing the end customer with optimal product presentation (content) and establishing a communicative customer relationship with this (interaction).

Pricing and integration

Of highest relevance for the Marketplace dealer is also a high price-setting competence (Price Sensitivity), as well as a collaborative integration and continuous improvement of the Amazon Seller Central system with the system world of the Marketplace dealer (integration).

For this, in addition to the use of a merchandise management system, the use of a CRM system is recommended in order to optimally manage the customer relationship (Interaction

The desire for constant innovation

In order to be able to ideally implement the strategic success factors relevant to the market trader, a high affinity for Internet use, as well as the desire for constant innovation (commitment), is indispensable. The strategic success factors of the volume trader were highlighted in blue in the table.

Taking into account the strategic success factors according to Wirtz, however, the Amazon Marketplace also carries great risks. These were marked in red in the table.

Risks from Amazon Market-Place

If a marketplace retailer works exclusively with the Amazon platform and does not maintain any other sales channels, it will be extremely difficult to build a brand in eBusiness / eCommerce (brand image). The independent controllable processes.

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3 responses to “Selling on Amazon: Success factors in eCommerce according to Wirtz”

  1. Anita Dyer says:

    Really a fabulous contribution!

  2. Marion says:

    As someone who has just become self-employed in sales at Amazon, I think that's really great!

  3. Marlon Waldrip says:

    Good contribution, I have the same gebookmarket.

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