How Your E-Commerce Brand Can Thrive in the Age of Amazon and Walmart

Posted on February 28, 2019

Amazon and Walmart are dominating market share in the e-commerce space. These retail giants have built robust marketplaces, allowing them to gather incredible amounts of consumer data and, as a result, generate revenue to outspend everyone.

That data is the most powerful thing to own in the e-commerce landscape. And, when you peel back all the layers of what they do externally, Amazon and Walmart are essentially just massive data collection companies.

Their hoarding of data is the reason e-commerce stores are getting pushed out of marketplaces. Amazon, for example, has taken the data it’s gathered and used it to create private labels in a wide range of categories. They don’t have to guess which categories to enter in order to turn a profit. The data allows them to know already. Ultimately, the private labels give these large data collectors the ability to undercut smaller e-commerce businesses — which is everyone else — and thrive at their expense.

This isn’t all doom and gloom for e-commerce store owners, though. In fact, the private label and spending efforts of Amazon and Walmart should be pushing e-commerce brands toward a more profitable model — going direct-to-consumer.

The direct-to-consumer approach is about owning the relationship with your shoppers. You can’t afford to simply be a customer’s storefront. You must build a real, personal connection with them.

Remember, the consumer belongs to the marketplace. So, if you’re selling on Amazon as your primary source of revenue, those customers belong to Amazon. It’s Amazon where they are making those purchases and it’s Amazon that is gaining all that data.

E-commerce businesses can get around this by eliminating reliance on the marketplace. This requires conversating, engaging, and listening to create a truly personalized experience with consumers. You must build a one-to-one relationship so they’ll come directly to you. It’s about providing true value to become more like a friend than a store.

Eventually, that value leads to high-infinity shoppers that boost customer lifetime value. In this case, it doesn’t matter what the likes of Amazon and Walmart are doing. You’ll have a successful, profitable business regardless.

How Engine Can Help

E-commerce stores must be operating on an elite platform to achieve an effective direct-to-consumer model. Engine is the platform that enables you to do this better than any other. This software gives you everything you need — from email automation to customizable themes to subscription capabilities to a content management system — already built-in and ready to go.

If you want to say goodbye to using all those undesirable plug-ins and say hello to the best platform for direct-to-consumer e-commerce, reach out to Engine and we’ll help you do just that. You can set up a call by clicking here or contacting our sales team via email.