There is a subliminal fear of Amazon because they have so much scale, what are your thoughts?
Amazon is very good, no question. They too have challenges. Here are ten that come to mind:
- They are huge.
- They are 56% FBA and 44% retailer.
- Their material handling technology is ten years old.
- Many brands are concerned about losing their brand identity within Amazon.
- Their overseas markets are often not profitable.
- Their private label products are not viewed positively by some brands.
- Sales visibility from Amazon of your products are limited.
- Rules change without much notice.
- Alexa reduces brand choices.
- Amazon costs can be high.
What should retail executives have their eye on?
In general retail executives should have their eye on any disruptions occurring in their space. These could be disruptions in products, services, or business models. Responding to and proactively being in front of these disruptions is critical to maintain your competitive edge and your profitable growth. There is a lot happening. We must realize the biggest risk is the status quo, not doing something new. My top five topics for disruption in the supply chain are:
- Final Delivery
- Fulfillment Center Automation
- Distributed Logistics