The collaborative marketplace is the next generation of the commerce model and retailers would be wise to embrace this model early to take advantage of the benefits. This model provides a framework for merchant partnerships and then a framework for consumers to essentially shop at a virtual mall. As an example, in the case of Amazon collaborative marketplace consumers benefit because Amazon assures the quality of the merchant, the delivery and products and the merchant also benefits from this Amazon assurance because they are not required to develop the reputation.
I think that the key to success is the reputation that Amazon brings to the marketplace of a quality experience. A second important factor that really closes the deal is the price, Amazon also has the reputation of the most competitive prices. The marketplace allows Amazon to offer the best price to the consumer by offering a variety of options to purchase, from brand new to refurbished, to used and this is provided all on the same page for the consumer to compare and make a decision. This feature, along with the search and comparison functions and then the ease of purchase (One Click Purchase) and delivery (Amazon Prime) present a compelling package to the consumer.
The marketplace for all intents and purposes is a technology platform, or framework, and this framework simply allows the reputation, selection and shopping experience to be delivered in a standard and extendable manner. The key to the success of the Amazon collaborative marketplace is quite simply Amazon. What I mean by this is that Amazon has been steady focused since inception on the customer experience and delivering a quality experience in all consumer interaction. From the first look for a product on the web site to the call for help with service on an item you can count on a quality experience. This experience is the ‘secret sauce’ of Amazon’s marketplace success and this reputation of a quality experience brings a huge value to their partners in the marketplace.
Speaking from my own experiences I can say quite comfortably that I shop at the Amazon marketplace because of the confidence I have that the experience will be positive. From my experience and viewpoint this is the reason why I am a repeat customer and why Amazon is my first stop to shop. This reputation is also why I will try new services or markets that Amazon offers without hesitation even to the grocery products. I see this reputation as the differentiating factor for Amazon and they are offering this benefit to their merchant partners.
And now for the audience participation portion of the show…
ECommerce will have wide ranging impacts on both the retail and manufacturing sectors. How can you focus these abilities to improve the consumers’ experience? Improving the consumers experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes. In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas. How can you support these continuously changing requirements?