Commexis Cast – August 15, 2018: The Double-Edged Sword of Retailers Partnering with Amazon

On today’s Commexis Cast we discuss Party City, and other big name retailers, choosing to sell their products on Amazon despite worries that Amazon could undersell them with a 3rd party alternative.

It is Wednesday, which means it’s time to talk about the purchase phase of the Buyer’s Journey. Purchase is the third step, following consideration. During the purchase stage your user/client/customer has already become aware of your brand, and have done their due diligence to determine which businesses they may want to purchase from. Now, your user is looking at things such as: shipping cost, stock availability, estimated arrival time, estimated departure time, production time, etc. These will be the deciding factor for conversion.

As Suman Bhattacharyya points out in his piece on Digiday, the convenience, ease, and habit of purchasing on Amazon is likely the reason Party City has teamed with the e-commerce site. In addition, partnering with Amazon opens the doors to 2 Day free shipping for Amazon Prime members, as well as better reach to customers who wouldn’t be able to reach a physical location.

However, this partnership isn’t without its worries. As Phillip, Len, and I discussed in the past, Amazon isn’t a stranger to requiring full inventories from certain brands lest the e-commerce site begin creating and selling versions of their own. To combat this, Bhattacharyya writes, “Party City designs and manufactures its own products, which it said differentiates itself from the range of offerings available in its category.” He continued that Party City will only be releasing a portion of its product, and in particular the products that they exclusively manufacture, thereby controlling the ability for Amazon to create something similar.

Today’s cast: Phillip Brooks (Commexis Lead Strategist) and Matthew McGrorty (Commexis Videographer/Podcaster).

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