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Is Shopify Making a Big Mistake by Competing Against Amazon?

3 pointsby t23almost 6 years ago

2 comments

simonblackalmost 6 years ago
Amazon is making a mistake by throwing out its low-profit areas. Amazon no longer allows me to buy used books from 3rd-party used-book sellers in the States, so now I have to use newly-found online-sellers like &#x27;Abe Books&#x27; or &#x27;Alibris&#x27;.<p>But both of these online sellers don&#x27;t just sell used books, they also sell new books and other items which I probably would have bought from Amazon previously.<p>Amazon has lost me as a customer, and no doubt many others as well with their new restrictive sales terms. When &#x27;important&#x27; companies start slavishly following profits instead of customer service, they have peaked and are now on their long slow decline to irrelevance.<p>(It was one of those &#x27;aha!&#x27; moments, when I was looking at an earnings graph one day, that I noticed that a company&#x27;s decline always begins when they are at their peak. It&#x27;s self-evident from a graph of course, but not an intuitive piece of knowledge for most people.)
jjohanssonalmost 6 years ago
Sounds like a great way for Shopify to take advantage of how small retailers (and direct-to-consumer brands) distrust Amazon because of the conflict of interest. They know that if they sell a lot through amazon, amazon will take the sales data and use it to undercut those same retailers &#x2F; D2C brands. With Shopify there is no conflict of interest because they are a platform, and not a retailer.<p>This sounds like a really smart move but it will be hard to pull off.