Amazon Leaving Brands in a Hard Spot

https://digiday.com/marketing/trapped-amazon-cornering-fashion-brands-wholesale/

Amazon is known as the king of online retailing.  It’s as easy as a scroll and a click.  For brands, it is not as loved.  It is a huge competitor for the retail environment and is changing the retail space as many know it.

Amazon has a lot of control over brands.  If you can’t beat them, joint them.  But even joining is at a disadvantage.  In this case, fashion brands that are looking to sell on Amazon can find it to be a lose-lose situation.

Amazon has a service called Prime Wardrobe that allows people to try on clothing and only pay for what has not been returned.  These services and the way that Amazon has a significant hold on other brands is both amazing and troubling.  Amazon is changing the landscape of retail and fashion.  Amazon is putting a chokehold on other brands.  Many brands do not want to go into wholesale but are left no choice.

Brands have little control over pricing and brand analytics.  That is all controlled by Amazon.  This can be extremely unnerving for higher-priced brands as they usually like to have control of their inventory and marketing.  Pricing needs to be competitive but Amazon’s wholesale pricing leaves more negative aspects for the brand that is selling on their platform.

In the future, brands will have to compete even more with Amazon and Amazon will need to try to have to play nice with other brands.  They have too much of a hold on the industry which is great for them but bad for everyone else.

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