Marketing defines the activity or process of creating an image in a customer, clients or a general target market to convince them of the benefits of a given product or service. For efficient marketing, one needs to understand the needs of the market targeted and do the marketing as per the requirements of the consumer public. Market research has to be carried out to determine the full specifications of the customer wants. Market research defines the function linking the consumer to the marketer through the flow of information between the marketer and the consumer. Market research lets the marketer get the full report to address the issues raised by the consumer.
Amazon.com Inc. has established a broader platform in the shipment industry undoubtedly because of its direct involvement with its customers (Eisend, 2015). The broader platform has seen Amazo.com Inc. even go as far as producing its products reducing outsourcing thereby making it more efficient for Amazon to deliver service to its customers when and where needed (Baskin, 2017). Employment of direct customer contact is a marketing tool giving Amazon a stride ahead making it difficult for other shipping organizations such as FedEx Corp too much the profits Amazon.com Inc. makes.
In a bid to come close to competing against Amazon Prime’s established market platform, major retailers such as Wal-Mart Stores Inc. have to spend more on delivery. And a shift in strategy may also work for other companies trying to match Amazon like getting close enough to provide a service level to customers as beating Amazon is close to impossible as says Stefan Weitz, the chief product and strategy officer at Radial (Baskin, 2017).
Providing low prices, is a marketing tool additional rival shipping and delivery service companies are employing to compete with Amazon Prime. Doing deliveries in fewer days than Amazon is also a tool used by other delivery service organizations such as ShipBob that came into the fulfillment center recently. Creating fulfillment centers is not as well a better approach other companies would use against Amazon since Amazon started the strategy long before these other players in the fulfillment business (Baskin, 2017).
Fulfillment is an essential entity in the era of retailing to ship orders out reliably. The companies that specialize in fulfillment have the upper hand in negotiating with the big delivery companies (Baskin, 2017). It is, therefore, the only option for the retailers is to involve the big delivery companies, and this would be costly. Another option is for the retailers to best focus on selling their established products than focus on delivering their products from one place to another (Baskin, 2017).
Matching Amazon or even coming close to matching Amazon for small retailers is a tall order since Amazon has an established market set and supported by its fulfillment specialization. Amazon handles all stages of goods delivery by itself, from understanding the customer needs, getting the visibility, to making available the product all the way making sure the order is complete. This action of Amazon removes small retailers from the equation as consumers would see Amazon as reliable since most products Amazon sells are in its name.
For a small retailer trying to compete Amazon, its best to focus on the selling of their products rather than concentrating on shipment or delivery of the product from the retail point to a customer in another location. Small retailers should, therefore, have their form of competition by competing among themselves.
Baskin, B. (2017). Amazon’s Free Shipping Pushes Small Retailers, Delivery Firms to Compete. New York Times