The biggest misconception of vendors about #Amazon? They think of Amazon as a traditional retailer. And so they treat the online giant just like any of their retail partners.

Sure, most CPGs know that Amazon is somewhat different.

Yet, they overlook that Amazon is a marketplace retailer, whose mission is to connect »existing« supply and demand.

This business model differs significantly from demand-creating retailers such as Walmart or Target.

𝗔𝗻𝗱 𝗶𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗵𝗼𝘄 𝗔𝗺𝗮𝘇𝗼𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗲𝘀 𝘄𝗶𝘁𝗵 𝘃𝗲𝗻𝗱𝗼𝗿𝘀:

⚔️ Traditional retailers lean into in-store innovations, treating ecommerce as a secondary channel. Amazon's priority is innovative, top-notch digital customer experiences.

⚔️ Retailers often place bulk orders early in the product lifecycle. But Amazon purchases minimal quantities, adjusting to fast-changing demand cycles.

⚔️ Traditional retailers focus on long-term supplier partnerships. For Amazon, any vendor with a current market share becomes a strategic partner.

So what can we learn here?

👉 𝗔𝗺𝗮𝘇𝗼𝗻'𝘀 𝗽𝗿𝗶𝗺𝗮𝗿𝘆 𝗴𝗼𝗮𝗹 𝗶𝘀 𝘁𝗼 𝗿𝗲𝗳𝗹𝗲𝗰𝘁 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗱𝗲𝗺𝗮𝗻𝗱, 𝗻𝗼𝘁 𝘁𝗼 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝘁.

The online retailer puts less emphasis on category development than other retailers, because the existing customer demand dictates how much it orders from suppliers.

And this means that the responsibility of driving innovation and category development sits with 1P vendors. Amazon won't take the lead on this.

So as you review your 2028 e-channel strategy, remember to treat Amazon as a marketplace and not as a traditional retailer.

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How does your business approach Amazon?

Share your thoughts in the comments!

#amazonvendor #amazonstrategy