The Key to Competing With Amazon on Price and Winning
Just the mere thought of it will put many e-commerce players off. Such is the power of the global retail giant. Smaller e-commerce companies spend weeks and months on researching and locating a product that customers would like to buy. An engaging website is developed and compelling digital marketing campaigns are launched. But in the end, the majority just buys that exact same product from Amazon. Many potential e-commerce players even put off launching their business because they just don’t have the tools or the wherewithal to compete with Amazon on price.
But, when there is a will there is always a way. It is all about finding it. In this piece, we will walk you through a number of ways that can be used to compete with Amazon on price. Let’s take a look one by one.
- Focus on Brand Building
Keep in mind that Amazon caters to everyone as a brand. Sure it will be difficult to go head-on against Amazon and try to match the giant in terms of number of products on offer, but you always find your niche and build a brand around that.
Because one is likely to find anything and everything on Amazon, it often brands itself as the “everything store.” Low prices, safe purchase options, convenient return policies, and real unbiased reviews from real users are some of the USPs of Amazon. However, when it comes to building a brand, Amazon struggles. And as a small e-commerce retailer, you can take advantage of this chink in Amazon’s armor by focusing on building a brand and finding your niche. This can help you work out what you are best at.
Never make the mistake of competing with Amazon on the whole. This is a recipe for disaster. Identify one (or at most a couple) area that you believe you are best at and try to dominate that industry. In this way, you can easily create engaging product content and descriptions that can help highlight your unique brand expertise.
- User Experience Is Key
The ease and convenience with which a user can navigate through your website is a big factor in driving more traffic to your web store as well as converting them into loyal customers. When customers are able to easily find what they are looking for, they will prefer coming back to your store instead of shopping from somewhere else.
- See If You Can Offer Free Shipping
Amazon provides unlimited free delivery on their “prime” products, most of which arrive on the very next day and even on the same day in some cases. While you may not be able to do something like this as a small e-commerce setup, you can always experiment with things such as free shipping for customers. Figure out if you can manage something like this without affecting your bottom-line too much.
- Building Customer Loyalty Is Key
Having loyal customers can give you a big advantage when trying to compete against Amazon. There are a number of niches that are not really well-supported by Amazon and you would do well to build your brand in such a niche. The spectacles industry is one such area that you can target and build your presence in.
Most people who wear glasses prefer to buy their eye gear by visiting a store. This is because they can easily try and see if a particular frame is suitable for them. That makes online purchasing of spectacles somewhat tedious. However, that does not mean you cannot sell online effectively. Some online spectacle providers offer a free trial at home on delivery so as to allow the customer to figure out if a particular frame and lens works for them. You can do something similar to build your brand and a loyal customer base.
- Quality Content Is King
This is a good way to compete against Amazon. Create compelling content around your products to entice customers. You can even charge higher prices and increase your profit margin with this. A great example is the bike manufacturing company Evelo who consistently bikes at higher prices than Amazon, thanks to the engaging content they are able to put up on their website.
So, there you have it. Using the strategies in this article will not just help you compete against Amazon on price. You will also be able to build a loyal customer base that will want to return to your store again and again.