It looks like a new record has been set by Amazon when the price of its shares has more than doubled this year. 2015 looks to be a very profitable year for Amazon. According to Thomson Reuter’s poll, Wall Street expects an outsized 462% earnings gain for the year. It is also predicted that fourth quarter earnings per share will nearly triple at $1.65. Competitors can’t help but be intimated by Amazon’s dominance but there are ecommerce opportunities in areas where Amazon is not strong.
There are online retailers like eBay and startups like Jet.com and ShopRunner that are competing with Amazon’s dominance. According to ShopRunner CEO Scott Thompson, it will not end well if you compete with Amazon using its own rules because it is bigger, stronger and faster. ShopRunner is a North American investment of Alibaba Group, China’s online shopping giant. ShopRunner has built a platform that offers a 2-day free shipping which is much like Amazon Prime loyalty program. Included in ShopRunner’s 2-day shipping promo are products from brands like Staples, Hugo Boss and Toys R Us.
On the other hand, Jet.com disagrees with ShopRunner because ecommerce has room for a large number of online stores. According to Jet.com CEO Marc Lore, there is no winner-take-all market and there is no number two in ecommerce. According to Thompson, Amazon played the game so well but there are still categories in ecommerce where Amazon is not that strong like new, in-season and branded merchandise. It is wrong to take Amazon head-on but you can build a business on merchandise that does not appear in an Amazon search.
One of the challenges that online stores have to face is how to replicate the good shopping experience that Amazon provides its customers. Amazon is an innovative company in ecommerce and it continues to raise the bar as far as customer experience is concerned. It is tough to compete with Amazon but it does not mean losing the opportunities present in the online market. There are competent and high skilled website designers like www.perth-web-design.com.au that can increase brand awareness and conversions for your business.