Online Markets Opportunity

Location, Location, Location

If 2020 has taught us anything it’s that you must be flexible and you must be online.  Your business must be able to adapt and adapt quickly.  The digital world can help you achieve this, not only supporting your existing customers, but to help you tap into an exploding market place.  Online retail is the main driver of retail growth and continues to gain ground over bricks and mortar sales.

The Figures

In 2019 an estimated 1.2 billion people bought online with e-sales exceeding 3.5 trillion USDs and as of October 2020, online traffic in the supermarket segment increased by 34.8 percent compared to the reference period in January 2020.  In 2019 online sales accounted for 14.1% of total global retail sales, with this figure expected to rise to 22% by 2023.  (www.statista.com)

Online sales are both a threat and an opportunity.  Our mission is to make sure you win in this rapidly evolving environment.

The Threat

“Digital is the main reason just over half the companies on the Fortune 500 have disappeared since the year 2000” – Pierre Nanterme, CEO of Accenture.

Failing to reach you entire audience, and failure to do this in a streamlined and accurate manner leaves the door wide open for your competitors to push you out.  Fear to embrace technology has crippled many businesses and stalled their potential to grow.

Traditionally, investments in technology have been painfully expensive, slow and disruptive and if you onboard with the wrong tech partner this can still be the case.  Larger, established tech businesses can heavily utilize expensive consultancy services and make any changes to core reports or software exorbitantly expensive.

The Opportunity

Amazon, Amazon is huge, even bigger than you think.  It’s a trillion-dollar market place generating 280 billion dollars in sales revenue in 2019 (www.fool.com).  Amazon have 50% of US ecommerce market and massive 800K strong workforce.

They have 300 million active users with 100 million Prime subscribers.  All of whom are browsing through the 600 million products that Amazon have on offer.  46% of all US online searches start on Amazon.  Amazon has a physical presence in 14 countries and growing and ships to over 100 countries.

There are two main ways that Amazon enable sellers to tap into this giant market place, first-party vendors (B2B) and third-party sellers (B2C).

In the B-B offering Amazon buy product directly from the vendor and sell this product on their market place as “sold and dispatched by Amazon”.  This is Vendor Central and it’s a by invitation only offering.   With the Vendor Central offering Vendor sign a contract with Amazon.  Through an Amazon online portal, they list the products they wish to offer, the price and availability.  Amazon raise regular which are available to view and manage through their portal.  The vendor can accept or reject the orders and then bulk ship direct to Amazon warehouses.  The benefits of B-B sales on Amazon are wholesale purchases from Amazon, priority selling and brand trust through Amazon’s credibility as a seller.

In the B2C offering Amazon allows 3rd parties to sell on Amazon market place.  This is called Seller Central.  Items can either be dispatched directly by the seller (Fulfilment by Merchant FMB) or the seller can make use of the Fulfilment by Amazon offering (FBA). Items are displayed on the Amazon market place as “sold by MERCHANT and Fulfilled by Amazon / Fulfilled by MERCHANT”.

Seller Central is a popular strategy for sellers allowing improved margins through better pricing control, more favorable payment terms and less reliance on the relationship with Amazon.

According to a 2018 survey of Amazon sellers, almost half of all businesses generated 81 to 100 percent of their revenues from Amazon sales.

In the end, all of this benefits Amazon. In 2019, Amazon generated 53.76 billion U.S. dollars in Seller Central revenues, up from 42.75 billion U.S. dollars in the previous year.  Vendor Central revenues account for the largest revenue segment of the online retail platform, seconded by Seller Central sales and both ahead of Amazon Web Service revenues. (https://www.statista.com/)

The Solution

SuperDisty can help you realise your full online potential.  We specialize in offering Amazon integrations to get you selling fast and affordably online and we also offer a suit of standardized and bespoke EDI solutions.  With 25 year of experience, we can guarantee a smooth transition from traditional retail sales to online sales.   SuperDisty can help introduce you to the Amazon market place and implement software automations that free up resources and enable your business to grow with the demands of expanding sales.  We provide reliable, data driven procedures and directly connect your ERP systems to Amazon.

Our eSuperStore tool can have you online in a matter of minutes, with an instant hosted website and ecommerce store. Yet it also provides the complexity of cross platform trading, integrating your product offering with Amazon, eBay, Facebook and more.

Our Product Finder tool helps you identify what products to best present to Amazon Market place, the price point required to be competitive (Amazon BuyBox) and clearly highlights all the cost associated with the different Amazon offerings and market places.

SuperDisty provide a suit of tool to assist Amazon compliances and complaint procedures and have build in mechanisms to reduce and dispute chargebacks.  We manage product compliancy, EAN and ASIN (Amazon Standard Identification Number) mapping and automate the publishing of your products instantly on multiple Amazon market places.   Our Vendor Central Connect, Enterprise Solution, fully integrates your ERP, back office, with the Amazon Vendor Central portal, eliminating the need to change your existing inhouse processes while ensuring full compliance with Amazon.  While our Seller Central Connect solution provides a low-level touch solution, were we present your products to the Amazon market place on your behalf.

SuperDisty can identify missed sales with our Lost Sales Business intelligence.  We’ve a proven track record of increasing sales volume and velocity.

With 25 years of experience with Amazon, we have faced many challenges and made many mistakes, but on this path we’ve built solutions.  We offer you the opportunities and the tools to be 25 years ahead!

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