Amazon, the dominant marketplace in North America has always wanted to be the everything store. Amazon Fashion, however, seems to a rudder-less business that is tone-deaf and looking to be a savior amidst COVID-19 horrific impact on the apparel sector.
2020 is a pivotal year for various sectors in the commerce industry, and post-2020 is uncertain at best. We are at month five of a new world (I despise the new normal references) as commerce continues to evolve to something new, we are still not talking about specific topics. Retail and online trade is sophisticated, and I wish we would talk about certain supposed hard things more. The silence on these topics makes my head spin.
According to Investopedia, asymmetrical information or information failure occurs when one party to economic transaction possesses more material knowledge than another party, or they do not have the perfect experience. It typically manifests when the seller possesses greater knowledge than the buyer; however, the reverse dynamic is also possible.
A good example of asymmetrical information is the relationship between a seller and a buyer. Whether it is a car salesman, estate agent, or realtor, or a marketplace, specific individuals always have more knowledge about the asset which they are trying to sell to an individual. The unfair advantage is also visible at a macro level on e-commerce as a sector.
As 2020 moves forward, I have been thinking about the unintended consequences related to the COVID19 virus. How it will change our lives is currently unclear. The illness has impacted every sector and activity, and unintended consequences are becoming visible globally. The law of unintended consequences is seen as a building block of economics, but it feels relevant to the current situation seen in the world.
Governments have done the right thing to protect citizens, but inadvertently forever changed retail, e-commerce, and commerce.
At the end of January 2020, I had the opportunity to speak with James Thomson and Whitney Gibson, the authors of a new book Controlling your brand in the Age of Amazon. As Amazon’s dependence on third-party sellers has grown from 3% in 1999 to 58% of Amazon’s retail operation, it becomes critical for brands to control the Amazon channel properly.
Thomson, the first Fulfillment by Amazon (FBA) account manager and Gibson share actionable strategies for brands to use to gain or regain control over Amazon sales. It is worth noting that the authors deal with brands on a daily basis. Marketplace channel management in their full-time occupations, Thomson on the consulting side as a partner at Buy Box Experts and Gibson as a Partner at Vorys, Sater, Seymour and Pease LLP. This enables e-commerce executives to leverage expertise gained from helping brands use Amazon as a profitable channel for e-commerce sales.