In preparation for Salesforce Connections 2025, I spoke with a lifelong friend about the dynamic landscape we navigate today. This fast-paced environment significantly influences ecommerce thought leaders, consultants, and merchants alike. It also shapes the strategies of online marketers, business owners, and all who thrive in the realm of digital commerce.
I was in the back seat of my car on my way from Texas to Florida, and I owed my friend Steve a call. I try to catch up often with him and he mentioned he had a life event to share. Turns out he is leaving his current company and going out on his own. His long 30-something year career has been specifically helping CG company’s sell online. Over the past 10 years, he worked with Amazon. He helped brands and companies grow their businesses using the Amazon platform.
Here’s a transcription of the live conversation I had with my buddy Steve, conducted through both text and phone communication. Edited to not incriminate any particular person or company…
ME: Great chat yesterday. So good for my soul!
You are a gonna kill it in your new venture!
Here is the article I came across from a CEO who has a bone to pick with Amazon. Interested in your thoughts…
====[Referenced CEO article about his experience with Amazon]====
“This is going to be a hot take: Amazon is ushering in the death of specialized retail and crushing innovation in action sports.
I’m not just talking about people buying from Amazon instead of specialty stores. The real damage comes from distribution models and Amazon’s algorithm.
From 2007-2015 my company was the worlds second-largest retailer of a particular branded watch. They were one of the most respected names in the space – a truly iconic ultra-premium brand.
Amazon killed it in three years.
We went from selling millions of these watches to zero, as did many retailers. That drop happened in under 24 months.
Here’s what happened:
First, gray market sellers flooded Amazon with discounted products. This shifted sales from specialty retailers to Amazon. But the big problem was Amazon’s algorithm. Amazon cycles the “buy box” between sellers. The seller awarded the buy box sells 90% of sales for that SKU. Others get scraps.
It’s like roulette. You might sell zero for four months, then sell out entirely in days. You have no idea if you’ll go 30 days without a sale, six months, or years. Because of this, we couldn’t predict sales, making stocking inventory impossible. Products with model years or expiration dates are particularly vulnerable. That’s why we went from purchasing nearly $1M from the watch manufacture one year to zero the next.
This watch went from one of the most desirable brands to essentially dead. The core distribution model that built their business – and their brand – was destroyed.
THE REAL WINNER? AMAZON.
Amazon collected massive advertising fees while the watch brand went downhill. When the business for this previously high-selling watch crumbled, Amazon didn’t even notice.
THE LESSON FOR SPECIALTY BRANDS: Be extremely careful how you play the game.
Amazon may provide a short-term boost, but its algorithm favors cheapest and most generic products. For high end brands, most Amazon sales aren’t net new sales, but rather sales taken from other channels, so the benefit is much smaller than perceived.
Premium offerings get buried. Brand value erodes. You get replaced by someone who does generic better.
High-end retailers pushing your product and pushes something else, or worse, isn’t around at all. Specialty brands need specialty retail partners who understand customers abs support brands. Mass volume retailers care nothing about your brand or product. You’re just another SKU.
Amazon isn’t just changing where people shop, it’s fundamentally altering which products succeed and which brands survive. For specialized, premium brands, that’s typically not for the better. Consumer convenience comes at the cost of innovation and brand diversity. Brand equity wins the long game.
====End of Reference Article==============
STEVE: This might sound harsh but in my opinion the market decides and while I acknowledge Amazon is able to pick winners and losers within its marketplace, the consumers ultimately decide.
Everything he says about the challenges are true but business is hand to hand combat.
Brands need to step up their game with consumers and rent is due everyday.
The days of magazine ads and a flashy commercial to inspire consumers are over.
At first glance, the watch in question does not appear to be fundamentally sound with their brand and product content on Amazon.
For example, they have a $500 watch on a very bland product detail page.
The watch’s social media presence is also random and uninspiring. I failed to see a compelling value proposition or anything that would differentiate their brand from anyone else.
Amazon is a very difficult marketplace to navigate and Amazon is no longer anyone else’s friend. With that said, brands that know how to leverage their equity by effectively engaging consumers win everyday.
I live in this world and it is definitely cutthroat and somewhat unfair at times. So is life, this watch brand just needs to do better.
ME: So many quotables quotable in your text. Gonna use some in my presentation on Wednesday:)
Great perspective. brands need a balanced attack! I find it similar to starting a fire with flint. You have to keep at it and stay engaged until the fire breathes on its own.
STEVE: Well said! There are so many methods and tools out there to build relevance and emotional connection with consumers. The challenge is being able to effectively stand out and message in an authentic way that resonates with the targeted consumer segment.
ME: You said it. Understanding or taking time to understand the demographic is critical. What attracts and entices me is not how you reach my 26 year old and GenZ daughter. To your point brands need to be knowledgeable, study, observe and in some ways quickly copy a trend or tactic because it is a here today and gone tomorrow environment.
STEVE: Exactly! I love these conversations, let’s have more of these!
ME: Definitely, great perspectives.
====END OF CHAT====
I hope you hung around and read this till the end. Two points I want to leave you with in today’s post!
- The customer is the channel! Go hang out where they hang out!
- Do Better!
Have a great weekend and to the fathers out there. May each of you be rewarded with love and attention and feel appreciated!
UXpedition 