Amazon’s investment on tools could go either way for small businesses

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 23, 2019, 8:51 AM UTC

The suite of new tools provides small businesses with optional pricing management system.

e-commerce giant Amazon has announced a $15 billion investment on tools this year as it ramps up its efforts to dominate the selling space for small businesses. While providing small businesses with optional pricing management tools, they also let Amazon decide product pricing.

The tools come with fulfilment facilities like one-day delivery and analytics reports based on purchasing trends, among others. But these tools could also make it difficult for businesses to leave the e-Commerce platform while affecting customer perception.

The author argues that while selling on Amazon provides brands with access to a large number of consumers, but they would be giving up control of their businesses. Brands should carefully consider the cost and opportunity benefits before opting for selling online on Amazon.

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