The rise of Amazon has prompted some observers to recommend unbiased ecommerce retailers are threatened. Rick Wilson, CEO of Miva, the ecommerce platform, disagrees. He says unbiased ecommerce is strong. His new guide “Dragon Proof Ecommerce,” gives a roadmap for continued progress.
I just lately spoke with him concerning the guide, Amazon, and the outlook for unbiased ecommerce. What follows is our complete audio dialog and a transcript, edited for size and readability.
Sensible Ecommerce: Your new ebook, “Dragon Proof Ecommerce,” is a information for unbiased retailers in an Amazon-dominated world. What’s the state of unbiased ecommerce in 2019?
Rick Wilson: The state of unbiased ecommerce is flourishing. Amazon’s proportion of retail ecommerce is rising on the similar fee as ecommerce general. In different phrases, non-Amazon retail ecommerce is rising, too.
A lot of the media positions Amazon as a Goliath that’s going to kill everyone, which isn’t true. That’s why I wrote the ebook. There’s all the time been a dragon — a dominant pressure in U.S. retail. It’s now Amazon. Not too way back it was Walmart, supposedly destroying communities. Earlier than that it was Sears. Apparently, one hundred years in the past, Sears Roebuck had extra income as a proportion of U.S. gross home product than Amazon does immediately.
PEC: Your ebook describes necessities for fulfillment in unbiased ecommerce. What are they?
Wilson: A variety of issues. Having an amazing product discovery expertise is the only neatest thing for an unbiased ecommerce vendor — serving to buyers discover what they want in a approach that’s superior to in-retailer purchasing, if attainable.
Right here’s an instance. Borsheims, the Berkshire Hathaway jewellery subsidiary, is a shopper of ours. One of many intelligent issues they’ve on the location is an engagement ring builder. It has Borsheims’ stay stock of diamonds, and buyers can customise an engagement ring.
One other instance is Plant Remedy, additionally a Miva buyer. They’re rising like gangbusters. They promote important oils, a commodity product, however they constructed a model round it. They’ve grown a Fb group across the well being advantages of important oils. Then they leverage that group — the place individuals commerce concepts — again to their very own Plant Remedy website. Additionally they promote on Amazon. They’ve created model loyalty for what’s, arguably, a reasonably normal merchandise.
Getting away from Miva examples, think about the rise of subscription field corporations. They’re a kind of product discovery — getting great things within the field each month.
These are the issues that I speak about within the guide which are defensible in a dragon world.
PEC: The Borsheims instance is a customizable product. Is that a key element for fulfillment?
Wilson: Customizable merchandise are essential. Commodity gadgets are okay so long as you possibly can construct a model round them, akin to what Plant Remedy has achieved.
PEC: How has Amazon affected Miva?
Wilson: On the entire, Amazon has been a internet constructive for us. Amazon was the primary firm to construct belief in ecommerce. They’ve made individuals snug with shopping for on-line. From a promoting standpoint, there are 2 million unbiased retailers on Amazon. It’s helped a whole lot of sellers to understand that there’s a much bigger market.
The factor I inform Amazon sellers is that this: In case you can promote with margin on Amazon, you’re not leveraging your small business correctly when you don’t additionally promote immediately and independently. Sure, Amazon has guidelines about buyer knowledge harvesting. However put a guaranty card in there, give somebody a present for filling out the cardboard, and get him to return to your website.
PEC: There’s a motion of types for digitally-native ecommerce corporations to open brick-and-mortar outlets. Do you see that accelerating?
Wilson: I don’t see it accelerating from our buyer base, nevertheless it might speed up general, sure. Each choices — deliver pure brick-and-mortar retailer into ecommerce and vice versa — are a part of the larger image of multichannel promoting.
Product discovery is a multichannel endeavor by its nature. We’re within the early days of these experiments. Pop-up shops inside greater shops are one other instance.
PEC: The place can readers purchase the e-book?
Wilson: Dragonproofbook.com presents the perfect worth. Readers also can enroll there to be notified of a podcast we’re beginning the place I’ll be speaking to retailers about dragon-proofing their enterprise.
PEC: Anything?
Wilson: Amazon is each a menace and a catalyst to success. Unbiased ecommerce is rising on the similar fee as Amazon. We’re nonetheless within the early adopter part. Solely about thirteen % of retail gross sales in North America are on-line. The market will proceed to evolve at a breakneck tempo till 50 % of retail is both on-line or a mix of on-line and pickup in-retailer. Don’t let Amazon scare you out of the sport.
