In March 2020, Amazon, the largest e-commerce company in the world, opened its digital doors in the Netherlands. The company could not have chosen a better time, because online sales have been booming since the start of the corona crisis. But what about Amazon? And what does that mean for other marketplaces and web shops? We provide an analysis.
Which way is it going?
Let's take Germany as an example, because Amazon has been active there for some time. Half of all online purchases go through Amazon. 80% of German customers start their customer journey on Amazon. There is therefore a good chance that Amazon will also become a major player in the Netherlands. Now there are already other large and mature e-commerce companies in the Netherlands such as Bol, Zalando and Coolblue, with Bol in particular being very popular with the Dutch (89% prefer Amazon over Amazon† That makes it interesting to see what the competition is doing.
Amazon's Ecommerce Competitors
Major e-commerce competitors have armed themselves against Amazon by capitalizing on the cost of the US marketplace. Bol.com, for example, now also sells clothing to better compete with Amazon. Bol.com advertises this on TV and even publishes a fashion magazine with Linda magazine.
The arms race of the major players has consequences for other webshops. Small competitors no longer appear in search results. Just search for household items such as an ironing board or a frying pan. The top 10 of the organic search results are occupied by big names such as bol, coolblue, wehkamp, blok and hema. Small webshops do not come in between. This has to do with authority, preferences of the searchers and the breadth of the offer.
In the paid search results, the smaller webshops also lose out to the big players. This is because they drive up the costs per click, so that smaller webshops have few opportunities to intervene. For example, the larger companies have dominance within the search engine in every way.
What does Amazon mean for your e-commerce?
The dominance of the big players means that customer journeys in B2C marketing will become more and more common on these types of marketplaces, whether that is Amazon or not. 16% of consumers already start their customer journey on a marketplace. The marketplaces account for 33% of online sales and they make up 40% of the online retail market. If you're not one of the greats, you need a good marketing strategy that capitalizes on what's going on.
There are then roughly two options for your own e-commerce after the arrival of Amazon. The first is to set up your business in such a way that you can take advantage of the online marketplaces. This means that you will mainly sell your products via Bol.com and the likes, instead of competing with them. Then can be a smart strategy. You increase your reach and benefit from the brand awareness of the chosen marketplaces.
Through our partner Channable we can help you push your products to different marketplaces. We can then manage, customize and track their performance from one place. We can also help with the product description to ensure that your products are easy to find within the marketplace.
The other option is to stand out from the crowd. What can you offer that Bol, Amazon or Coolblue cannot? What makes your product, service or brand special? To distinguish yourself, it is important to set up a strategy for your branding and that you use the right channels to reach your target group. Social Brothers can help you determine the right (social) media channels for your company and target the right audiences.
Want to know more?
Do you want to know what the arrival of Amazon means for the marketing strategy of your e-commerce company? take contact on with Social Brothers! Together we look at which option best suits your company.
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