The aim of this research was to identify the reasons that lead Amazon sellers to move away from the marketplace and look for alternative opportunities. Derived from this, the research question arises: Which factors contribute to the fact that suppliers are increasingly looking for new trading platforms as an alternative to the Amazon marketplace? With the help of a literature research of theory and practical context, hypotheses were developed, which were examined by means of an expert interview.
Amazon is one of the largest companies in this age. With its marketplace, Amazon can generate the greatest reach in order to reach customers. The problem that retailers currently have to deal with are on the one hand the extremely high fees that you have to pay to Amazon in order to be listed on the market at all and on the other hand the customer-friendly and retailer-unfriendly service from Amazon, especially for complaints and returns, is increasingly no longer acceptable for many retailers. This means that many retailers have to look for alternative sales opportunities in order to remain competitive. However, it is extremely difficult to create such a "simple" and customer-friendly online shop as Amazon or to find an alternative with the same large reach as Amazon.
Table of Contents
1. Abstract
2. Introduction & background
3. Theoretical Background & Hypotheses Development
4. Method
5. Results
6. Discussion
7. Bibliography
Research Objectives & Topics
The primary objective of this research is to identify the critical factors that drive Amazon sellers to abandon the platform in favor of alternative trading opportunities, specifically addressing the research question regarding why suppliers are increasingly seeking alternatives to the Amazon marketplace.
- Analysis of the Amazon marketplace's business model and cost structures.
- Investigation of retailer dissatisfaction regarding fees and service quality.
- Exploration of the impact of Amazon's complex key figure system on seller retention.
- Examination of competitive pressure and "buy box" mechanics as migration triggers.
- Evaluation of qualitative expert insights into seller migration strategies.
Excerpt from the Book
Theoretical Background & Hypotheses Development
Amazon is basically an online mail order company that offers a wide range of products and products. According to Amazon, the company has the world's largest selection of books, videos and CDs. By means of the integrated sales platform, the so-called “Marketplace”, companies and private individuals can also offer and sell new and used products on the Amazon platform. Amazon itself is a growth-oriented company, the aim here is to always reduce costs in purchasing and logistics through growth and to pass on the resulting savings directly to end customers (vgl. Majed et al., 2018). Amazon's strategy is therefore the cost leadership, here the cost and price reductions, in connection with the resulting network and lock-in effects lead to an upward spiral. This spiral continuously attracts further customers and dealers, which leads to a steadily growing product selection and variety on the marketplace.
The profits generated are further invested by Amazon in order to maintain the state of growth and to expand it further (vgl. Schallmo et al., 2016). The company Amazon does not only act as a neutral online marketplace operator, but also offers products and brands from other manufacturers on the marketplace. In addition to the offer from other brands, Amazon is also increasingly selling its own productions under the name “AmazonBasics” on the marketplace. This means that Amazon is a marketplace operator, retailer and manufacturer. In addition, Amazon is also a logistics provider, as retailers can use “Fulfillment by Amazon” for a short FBA, which means that the seller lets Amazon handle the storage, dispatch and return of the goods (vgl. Kamps & Schetter, 2017).
Summary of Chapters
Abstract: Provides an overview of the research aims, the methodology, and the key findings regarding factors that trigger seller migration from Amazon.
Introduction & background: Details the current market situation, the dominance of Amazon, and growing retailer dissatisfaction based on existing studies and reports.
Theoretical Background & Hypotheses Development: Explains the business model of Amazon and derives three specific hypotheses regarding fees, key figure systems, and competition as drivers for seller churn.
Method: Describes the qualitative research approach, specifically the use of an expert interview and Mayring’s qualitative content analysis to evaluate the findings.
Results: Presents the findings from the expert interview, identifying factors such as "problem customers," portfolio design, and complex key figure systems as causes for migration.
Discussion: Validates the developed hypotheses against the expert findings and provides recommendations for both platforms and future sellers.
Bibliography: Lists all academic and practical sources used throughout the research paper.
Keywords
Amazon, marketplace, retailer, seller satisfaction, e-commerce, sales fees, platform economy, seller migration, key figures, buy box, competition, business strategy, expert interview, qualitative research, retail management.
Frequently Asked Questions
What is the core focus of this research paper?
The research examines the reasons why suppliers are increasingly looking for alternative trading platforms instead of utilizing the Amazon marketplace.
What are the central themes discussed in the paper?
Key themes include retailer dissatisfaction with high fees, the complexity of Amazon's seller key figure systems, competitive pressure within the "buy box," and the general trend of platform migration.
What is the primary research question?
The research question asks: "Which factors contribute to the fact that suppliers are increasingly looking for new trading platforms as an alternative to the Amazon marketplace?"
Which scientific method was applied?
The author conducted a literature review to develop hypotheses and utilized a qualitative, semi-structured expert interview, analyzed according to Mayring's content analysis method.
What topics are covered in the main body of the work?
The main body covers the theoretical foundations of Amazon’s business model, the derivation of hypotheses, the methodology of the expert interview, and the presentation of results regarding specific migration factors.
Which keywords characterize the study?
The study is characterized by terms such as Amazon marketplace, retailer churn, e-commerce competition, platform strategy, and seller performance metrics.
How does the "buy box" impact seller behavior?
The "buy box" intensifies competition as sellers lower prices to win placement; if they fail to win it, they are more likely to seek alternative platforms.
Why is the "key figure system" considered a burden for sellers?
The system is highly complex and time-consuming, requiring constant monitoring. Experts suggest that further tightening of these requirements drives sellers away from the platform.
- Citation du texte
- Manuel Weber (Auteur), 2021, Weaknesses of the Amazon Marketplace. Which factors contribute to the fact that suppliers are increasingly looking for new trading platforms?, Munich, GRIN Verlag, https://www.grin.com/document/1001202
