The risks are homemade by Amazon
The risks are the main part of Amazon and can hardly be influenced by the dealer itself.
Above all, future process changes on the part of Amazon represent an incalculable risk component for the trader, since process changes can always be associated with costs that are passed on to the trader.
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 systemically immanent
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.
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.
|Content||Effective presentation of products and services|
|convenience||Develop a user-friendly and intuitive website|
|Control||Extent of independently controllable processes|
|I||Building and maintaining individual customer relationships|
|Community||Establish and maintain relations with like-minded individuals, groups or organizations|
|Price Sensitivity||The pricing competence for products and services|
|Brand Image||Building a reliable brand in e-business|
|Commitment||A strong motivation for Internet use and the desire for constant innovation|
|Partnership||Extent of the use of partner relationships in the value added, in order to expand the Internet presence|
|Process Improvement||The company's competency to adapt and automate business processes|
|Integration||Supporting the partnership and process improvement through the underlying IT systems|
Success factors of strategy implementation according to Wirtz
Although the success of an eCommerce start-up medium Amazon Marketplace depends crucially on the specific company, as well as various environmental conditions, but basic factors and parameters can be identified, in the knowledge and attention of 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 also does not maintain any other distribution channels, it will be extremely difficult to build a brand in eBusiness / eCommerce (brand image). Another risk for the Marketplace dealer is the independently controllable processes.
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