The Amazon Effect

SHAPE UP AND SHIP OUT


Seriously, the world of shipping physical products is at an all time high. Remember when people thought email was going to put the Post Office out of business? Canada Post decided to focus on E-commerce mail and they hit 2 billion dollars in parcels revenue (in 2017) because of it. The reality is, things are still shipping and smart entrepreneurs are setting themselves up to compete in a less localized market. We owe a lot of this to Amazon. In this blog we will talk about how they did this and the benefit of integrating ecommerce into your business. 


Amazon is the dominating marketplace for the E-Commerce industry worldwide. They serve many different types of consumers including primary consumers, company serve sellers, developers, enterprises, and content developers. As of May 15, 2019 Amazon surpassed Walmart as the largest retailer in the world with their core business being selling goods via the internet. Operating smoothly for 25 years running and Amazon seems to have cracked the code for internet marketplaces. 


Consumer behaviours are constantly changing and with that realization, brands need to adjust the way they have been tackling the methods they have been using to reach their consumers in a convenient-for-them way. With the many ways they have managed to reach consumers at this point, it’s no wonder Amazon has skyrocketed and become so much more successful within recent years. This paves the way for a much sturdier question; what will happen when businesses realize that they don’t actually need to use E-Commerce websites like Amazon and Ebay to distribute merchandise when they can skip the third party and do everything for themselves? Of course this involves more work and dedication to the businesses, but would it in turn become more cost effective and beneficial for business? 



Benefits for incorporating E-Commerce within your business:


  • No more reliance on distribution or warehouse centres for your goods.


  • Ability to reach peak advertising capabilities.

By using your own transportation and distribution abilities you are able to advertise exactly what you want from initial purchase to deliverance of your product. 

  • Convenience and ease of research.

By having your products available on your own website people can research, rate/review, and purchase all in the same place. 

  • Able to avoid counterfeit goods. 

Consumers know they are getting the exact items they are purchasing instead of ones that could be cheaply remade as a knock off. 

  • Allows consumers to have access to purchasing goods 24/7

Consumers are able to make purchases during non-business hours. 



Though the Amazon Effect may be real, Amazon doesn’t have to be the only E-Commerce player in the industry. By taking out the middle-man and shifting businesses towards having their own personal shipping distributors we can take over the entire E-Commerce industry that Amazon has been powering for a number of years. If multiple businesses could adjust the way they handle their sales, especially within the realms of e-commerce, it’s possible that these companies could carve out their niche. 


Within the next decade it will most likely be more popular than purchasing within physical locations. The market share for online retail has continuously grown and surpassed the most confident of expectations. At one point pundits argued that is was nothing more than a fad. I think we can agree, it’s beyond that. The infrastructure and the roadmap is in place for companies willing to pay attention. 


Ecommerce is more than just setting up a website, you need storage and shipping options. You’re not going to go out and buy a transport and a warehouse. The beauty is, companies like Smartway Trailers, offer truck rentals. These rentals can be used for shipping and storage. The price is extremely fair because they do not want to eat into their clients margins. Think about the opportunity here. Traditional storage is expensive. Most companies do not need a giant warehouse to store their products. Now, you can rent a trailer and leave it in your lot locked up safely. Do you know a group qualified drivers without their own rigs? Well put them to work delivering for you. Again, the options are endless. As we watch the E-commerce world reach new heights, the people jumping on these opportunities will be well positioned for major success. 




BACK TO TOP

SHAPE UP AND SHIP OUT


Seriously, the world of shipping physical products is at an all time high. Remember when people thought email was going to put the Post Office out of business? Canada Post decided to focus on E-commerce mail and they hit 2 billion dollars in parcels revenue (in 2017) because of it. The reality is, things are still shipping and smart entrepreneurs are setting themselves up to compete in a less localized market. We owe a lot of this to Amazon. In this blog we will talk about how they did this and the benefit of integrating ecommerce into your business. 


Amazon is the dominating marketplace for the E-Commerce industry worldwide. They serve many different types of consumers including primary consumers, company serve sellers, developers, enterprises, and content developers. As of May 15, 2019 Amazon surpassed Walmart as the largest retailer in the world with their core business being selling goods via the internet. Operating smoothly for 25 years running and Amazon seems to have cracked the code for internet marketplaces. 


Consumer behaviours are constantly changing and with that realization, brands need to adjust the way they have been tackling the methods they have been using to reach their consumers in a convenient-for-them way. With the many ways they have managed to reach consumers at this point, it’s no wonder Amazon has skyrocketed and become so much more successful within recent years. This paves the way for a much sturdier question; what will happen when businesses realize that they don’t actually need to use E-Commerce websites like Amazon and Ebay to distribute merchandise when they can skip the third party and do everything for themselves? Of course this involves more work and dedication to the businesses, but would it in turn become more cost effective and beneficial for business? 



Benefits for incorporating E-Commerce within your business:


  • No more reliance on distribution or warehouse centres for your goods.


  • Ability to reach peak advertising capabilities.

By using your own transportation and distribution abilities you are able to advertise exactly what you want from initial purchase to deliverance of your product. 

  • Convenience and ease of research.

By having your products available on your own website people can research, rate/review, and purchase all in the same place. 

  • Able to avoid counterfeit goods. 

Consumers know they are getting the exact items they are purchasing instead of ones that could be cheaply remade as a knock off. 

  • Allows consumers to have access to purchasing goods 24/7

Consumers are able to make purchases during non-business hours. 



Though the Amazon Effect may be real, Amazon doesn’t have to be the only E-Commerce player in the industry. By taking out the middle-man and shifting businesses towards having their own personal shipping distributors we can take over the entire E-Commerce industry that Amazon has been powering for a number of years. If multiple businesses could adjust the way they handle their sales, especially within the realms of e-commerce, it’s possible that these companies could carve out their niche. 


Within the next decade it will most likely be more popular than purchasing within physical locations. The market share for online retail has continuously grown and surpassed the most confident of expectations. At one point pundits argued that is was nothing more than a fad. I think we can agree, it’s beyond that. The infrastructure and the roadmap is in place for companies willing to pay attention. 


Ecommerce is more than just setting up a website, you need storage and shipping options. You’re not going to go out and buy a transport and a warehouse. The beauty is, companies like Smartway Trailers, offer truck rentals. These rentals can be used for shipping and storage. The price is extremely fair because they do not want to eat into their clients margins. Think about the opportunity here. Traditional storage is expensive. Most companies do not need a giant warehouse to store their products. Now, you can rent a trailer and leave it in your lot locked up safely. Do you know a group qualified drivers without their own rigs? Well put them to work delivering for you. Again, the options are endless. As we watch the E-commerce world reach new heights, the people jumping on these opportunities will be well positioned for major success. 




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Chris Smart

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chris.smart@smartway.ca
905-775-6700 ext 101

Mike Smart

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mike.smart@smartway.ca
905-775-6700 ext 102

Mario Clewlow

General Manager
mario.clewlow@smartway.ca
905-775-6700 ext 116

Danielle Smart

CFO
danielle.smart@smartway.ca
905-775-6700 ext 116
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