How to Compete With Amazon as an Ecommerce Brand

July 16, 2024
Jax Zheng

There’s no question about it: People love Amazon.

And why shouldn’t they?

They get access to almost any product, brand, style, and price range. They receive lightning-fast customer support. And best of all?

Their packages arrive at their doorstep within just a few days.

But, that doesn’t mean that all hope is lost for smaller ecommerce brands. There’s still a lot of advantages that ecommerce brands have over the world’s largest retailer.

There’s just something different about shopping at Walmart compared to your local mom-and-pop store.

Even with Amazon’s infrastructure, capital, and workforce, direct-to-consumer brands still have a chance in today’s economy. Keep reading to find out how you can take advantage of Shippie’s technology and compete with that iconic orange-and-blue smile.

[Book a free sales call with Shippie today.]

How Amazon Wins

There’s a lot of great things about Amazon—for both consumers and ecommerce businesses.

As a customer, you can find just about anything you need in one place. It’s all connected to your account and if you ever have any issues, you can connect to a service representative to start returns or get refunds.

Without a doubt, Amazon’s main value proposition is Prime delivery. If you’re an Amazon Prime subscriber (which isn’t cheap at $139 per year), most products have free one- to two-day shipping. Shopping on Amazon is one of the most efficient ways to get what you need.

Compete with Amazon’s shipping today.

For brands, Amazon gives you access to hundreds of millions of customers worldwide. Depending on many factors, you can exponentially grow your revenue overnight by being on Amazon.

You get access to new demographics, you gain free traffic if your listings are set up properly, and if you use Fulfillment by Amazon (FBA), they’ll handle everything once your product gets delivered to your doorstep.

But, Amazon fees continue to increase its fee structure and you lose valuable customer data… and your relationships with customers.

Challenges for Smaller Ecommerce Brands

So, if you’re a founder or executive of a brand doing multiple seven figures, then you’ve probably run into many issues when figuring out your channel distribution, logistics, and how to best serve your customers.

As the founder of logistics startup Shippie, I talk to dozens of brands each week, some doing a few hundred thousand annually and others scaling to millions per month.

Here are some of the most common challenges that operators are facing in 2024:

  • High Shipping Costs: Without the ability to receive volume discounts, shipping gets extremely expensive and eats into contribution margin and net profit.
  • Last-Mile Delivery Inefficiencies: The final delivery to customers’ door is the most expensive and complex part of the shipping process. Road traffic, incorrect addresses, and multiple delivery costs reduce efficiency and increase costs.
  • Customer Expectations: Shoppers are trained to expect items in days—not weeks.
  • Returns Management: Handling returns is frustrating and confusing for businesses. It adds more stress to your team and gives customers a worse experience.
  • Environmental Concerns: As consumers and businesses become more aware of the impact of their shopping habits, sustainability is a huge focus for brands.

All of these factors around logistics make it make it difficult to focus on the things that truly grow your business and make more money. But, that doesn’t mean it’s impossible to serve your customers and create a thriving business.

How to Win With Last-Mile Delivery

Having a reliable last-mile delivery partner may be the solution for your business. Last-mile delivery is the final stage of the fulfillment process, typically the steps between warehouse to doorstep.

While you could rely on Amazon’s marketplace and fulfillment centers to grow revenue, managing your own last-mile delivery increases your profit and builds trust with your customers. With Amazon, you don’t get a customer’s email address, you can’t send products in your own packages, and you aren’t able to retain them as easily as you could with your own Shopify storefront.

At Shippie, we handle everything you need to get your goods from your warehouse to people’s hands. Here’s how it works:

  1. You pack orders then request a pickup
  2. We sort the packages in our facilities
  3. We immediately dispatch order for delivery and provide proof of delivery

Brands that work with Shippie experience less returns and higher retention, and we integrate with most ecommerce platforms while providing you a dedicated support team to answer any questions you may have.

If you’re interested in learning more, feel free to book a call with someone from our team to figure out the best solution for your business.

Book a call today.