DEMOCRATIZING THE RETAIL INDUSTRY: HOW AMAZON HELPS SMALL BUSINESSES THRIVE

Creating higher profit margins by eliminating traditional retail methods.

A seasoned brick and mortar store owner would know the uphill challenges to the profitable path: exclusive partnerships, tight competition and navigating the traditional routes to retail selling and distribution. These conventional routes often act as barriers and hurdles for the small business owner- especially if they are trying to introduce a brand in the market that is already being dominated by a better-known product.

This is where Amazon essentially makes the market accessible for all. By offering its platform and its audience to brands for a commission, Amazon eliminated the traditional distribution channels that are common in offline retail. While conventional distributors usually have exclusive agreements, Amazon has no such restrictive clause. It is essentially a free for all marketplace where competitors vie for the attention of the customers.

Additionally, businesses have the option to fulfill orders directly to customers- giving them the chance to build strong personal customer relationships. Such flexibility and opportunity is a hallmark of Amazon and offline distribution based brands would find this hard to do by themselves. Hence businesses save on margins and turn profit by eliminating what would have otherwise been spent on traditional fulfillment methods.