The internet has revolutionised the way people shop and electronic commerce has reshaped the retail landscape dramatically. It suddenly allowed small companies to reach out to millions of potential customers and lowered market entry barriers significantly in areas where once only big retail companies competed against each other. But the times when small companies could create online shops and compete with the big players are almost over yet again, and Amazon catalyses this change by seizing a growing share of the whole online retail market.
Every second dollar spent online in the US is already spent on the Amazon.com marketplace and the trend in the German market is going in the same direction. The fact that a significant number of overall online sales are generated on the Amazon marketplace impacts other e-tailers. They must react to market concentration and consider whether or not they want to sell their products on Amazon.
There are many opportunities and risks that can result from cooperation with Amazon but there is a lack of papers and books that consider both aspects at the same time, quantifying them, weighing each up against the other, and deriving conclusions from it.
The aim of this thesis is to close the aforementioned gap in available literature by presenting the current market situation in the e-commerce and analysing the signs of a further market concentration, in order to provide evidence of the problematic situation small and medium-sized enterprises (SME) are in. The thesis then examines the option of cooperating with Amazon as a possible solution to react on this trend and therefore researches the possible chances and risks that could arise through such cooperation. Those insights are thereafter incorporated into a strategic recommendation for e-tailers who consider selling on Amazon. Furthermore, a selling guide which was evaluated in practice, depicts how a company could sell products successfully on the marketplace.
In the end, this thesis should contribute to e-tailers’ knowledge about the current and future market situation in e-commerce. In addition, the insights presented should support e-tailers’ decision making process when they are confronted with the question of cooperating with the e-commerce giant or not.
Table of Contents
- 1. Introduction
- 1.1 Problem Statement
- 1.2 Mission Statement and Leading Questions
- 1.3 Scope and Outline of Content
- 2. Related Work
- 3. Research Methods
- 3.1 Secondary Analysis: Literature and Data Research
- 3.2 Primary Analysis: Mixed Method
- 3.2.1 Case Study
- 3.2.2 Netnography
- 3.2.3 Survey
- 4. Results and Discussion of Secondary Analysis: Research on Amazon
- 4.1 Economic Context
- 4.2 The Rise of Amazon and the Market Concentration of the E-Commerce
- 4.2.1 The Rise of Amazon
- 4.2.2 The Market Concentration of the E-Commerce: Facts and Figures
- 4.3 Reasons for the Rise
- 4.3.1 Amazon's Vision and Mission
- 4.3.2 Amazon's Strategy and its Implementation
- 4.3.3 Theoretical Reasons for the Rise of Amazon
- 4.4 Discussion: Research on Amazon
- 4.4.1 Is there a Market Concentration in the German E-commerce?
- 4.4.2 What are the Reasons for the Market Concentration and will this Trend continue into the Future?
- 5. The Amazon Marketplace
- 5.1 Importance of the Marketplace for E-tailers
- 5.2 Ways of functioning
- 6. Results and Discussion of Primary Analysis: Research into Chances and Risks for Companies Selling on Amazon
- 6.1 Results of the Case Study
- 6.1.1 Chances
- 6.1.2 Risks
- 6.2 Results of the Netnography
- 6.2.1 Risks
- 6.3 Results of the Survey
- 6.3.1 Composition and Characteristics of the surveyed E-tailers
- 6.3.2 Chances Sellers on Amazon can take Advantage of
- 6.3.3 Risks Sellers experience when selling on Amazon
- 6.3.4 Reasons for Companies not to sell on Amazon
- 6.4 Discussion: Chances and Risks of Selling on Amazon
- 6.4.1 What are the Chances and Risks of selling on Amazon and how often do they affect E-tailers?
- 6.4.2 Do the Chances and Risks affect differently structured SMEs on Amazon to the same Extent?
- 7. Strategic Recommendation and an Online Selling Guide
- 7.1 Should SMEs sell on Amazon?
- 7.2 How can a company successfully sell on Amazon?
- 7.2.1 Gain Knowledge about the Platform and Stay informed about Changes
- 7.2.2 The Amazon Algorithm for Ranking and Measures to improve E-tailers' Positions
Objectives and Key Themes
This thesis analyzes the opportunities and risks for e-tailers selling on Amazon.de, focusing on the increasing market dominance of Amazon and its implications for smaller companies. The research aims to provide strategic recommendations for e-tailers considering or already using Amazon as a sales channel. * Market concentration in the e-commerce sector and Amazon's role. * Opportunities and risks for companies selling on the Amazon marketplace. * Strategic recommendations for successful selling on Amazon. * Analysis of Amazon's business model and its impact on the market. * Case studies and empirical data to support findings.Chapter Summaries
1. Introduction: This chapter introduces the research problem, focusing on the growing dominance of Amazon in the online retail market and its consequences for smaller e-tailers. It establishes the research questions and outlines the scope of the study, which includes secondary research on Amazon and primary research investigating the experiences of companies selling on Amazon.de. The chapter lays out the framework for the subsequent analysis, highlighting the importance of understanding both Amazon's business model and the specific challenges and opportunities faced by companies relying on its platform. 2. Related Work: This chapter reviews existing literature on e-commerce, focusing on the rise of Amazon and the dynamics of online marketplaces. It contextualizes the research by summarizing previous studies that analyzed similar themes, such as market concentration, competitive strategies in the online retail space, and the experiences of smaller businesses navigating large platform ecosystems. This review provides a foundation for the current research by illustrating the existing knowledge base and highlighting gaps that this thesis addresses. 3. Research Methods: This chapter details the methodology employed in the study, encompassing both secondary and primary research methods. The secondary analysis involves a review of relevant literature and existing data on Amazon and the e-commerce market. The primary research uses a mixed-methods approach, combining a case study of a specific company, netnography to analyze online discussions about selling on Amazon, and a survey of e-tailers to gather data on their experiences. This section justifies the chosen methods and explains how they contribute to a comprehensive understanding of the research questions. 4. Results and Discussion of Secondary Analysis: Research on Amazon: This chapter presents the findings from the secondary research on Amazon. It examines Amazon's economic context, its rise to market dominance, and the underlying reasons for its success. The analysis delves into Amazon's vision, strategy, and its implementation, exploring concepts like network effects and the "Winner Takes All" principle. This section discusses market concentration in German e-commerce and the predicted trends. 5. The Amazon Marketplace: This chapter focuses specifically on the Amazon marketplace, examining its importance for e-tailers and how it functions. It explains the platform's mechanics, outlining the various ways companies can use the marketplace to sell their products. The analysis may delve into factors such as fees, seller rankings, and competition within the platform. This knowledge forms a vital backdrop for understanding the chances and risks detailed in the subsequent chapter. 6. Results and Discussion of Primary Analysis: Research into Chances and Risks for Companies Selling on Amazon: This chapter presents the key findings of the primary research, combining insights from the case study, netnography, and survey to provide a comprehensive analysis of the opportunities and risks associated with selling on Amazon. It carefully examines how those risks and chances affect differently structured SMEs. The data analysis might uncover how the benefits and drawbacks influence different types of small and medium-sized enterprises (SMEs) using the platform. This is a crucial part of the thesis as it provides a direct response to the central research question. 7. Strategic Recommendation and an Online Selling Guide: This chapter offers strategic recommendations for small and medium-sized enterprises (SMEs) considering selling on Amazon, based on the previous chapters' findings. The chapter proposes practical advice and strategies for navigating the platform and optimizing their sales performance. It could include guidance on aspects such as platform knowledge, algorithmic ranking, and marketing strategies within the Amazon environment. This provides actionable steps for companies wanting to succeed on Amazon.Keywords
E-commerce, Amazon, Marketplace, Online Sellers, Opportunities, Risks, Market Concentration, Strategic Management, SMEs, Online Selling Guide, E-tailers, Case Study, Netnography, Survey.
Frequently Asked Questions: Comprehensive Language Preview
What is the main topic of this research?
This research analyzes the opportunities and risks for e-tailers selling on Amazon.de, focusing on Amazon's increasing market dominance and its implications for smaller companies. It aims to provide strategic recommendations for e-tailers considering or already using Amazon as a sales channel.
What are the key themes explored in this research?
The key themes include market concentration in the e-commerce sector and Amazon's role, opportunities and risks for companies selling on the Amazon marketplace, strategic recommendations for successful selling on Amazon, analysis of Amazon's business model and its impact on the market, and the use of case studies and empirical data to support findings.
What research methods were used?
The research employs both secondary and primary methods. Secondary analysis involves reviewing existing literature and data on Amazon and the e-commerce market. Primary research uses a mixed-methods approach, including a case study, netnography (analyzing online discussions), and a survey of e-tailers.
What are the key findings regarding Amazon's market dominance?
The research examines Amazon's economic context, its rise to market dominance, and the reasons for its success, including its vision, strategy, and implementation. It discusses market concentration in German e-commerce and predicts future trends.
What are the key findings regarding the opportunities and risks of selling on Amazon?
The research identifies both chances and risks for companies selling on Amazon, analyzing these factors across different types of SMEs. Data from a case study, netnography, and a survey are combined to provide a comprehensive analysis of these opportunities and risks.
What strategic recommendations are provided for SMEs selling on Amazon?
Based on the research findings, strategic recommendations are offered for SMEs considering or already selling on Amazon. These recommendations include practical advice and strategies for navigating the platform and optimizing sales performance, covering aspects like platform knowledge, algorithmic ranking, and marketing strategies.
What is the structure of the research report?
The report includes an introduction, a literature review, a detailed methodology section, results and discussion sections for both secondary and primary research, and finally, strategic recommendations and a guide for online selling. A table of contents provides a detailed overview of the chapters and sub-sections.
What are the key words associated with this research?
Key words include: E-commerce, Amazon, Marketplace, Online Sellers, Opportunities, Risks, Market Concentration, Strategic Management, SMEs, Online Selling Guide, E-tailers, Case Study, Netnography, Survey.
What specific aspects of Amazon's business model are analyzed?
The analysis delves into Amazon's vision and mission, its strategy and its implementation, exploring concepts like network effects and the "Winner Takes All" principle. The importance of Amazon's marketplace for e-tailers and how it functions is also examined.
How are the findings from different research methods integrated?
The research integrates findings from secondary analysis (literature review and data research) and primary analysis (case study, netnography, and survey). The integration helps provide a comprehensive and nuanced understanding of the opportunities and risks for e-tailers selling on Amazon.
- Citation du texte
- Samuel Weihrauch (Auteur), 2018, E-Commerce in Times of Amazon. Chances and Risks for E-tailers, Munich, GRIN Verlag, https://www.grin.com/document/1034426
