Amazon’s weakness
Articles & Reports
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Jun 2021
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Benedict Evans
What: Amazon does not know what it sells. It is a web service company.
Why it is important: This gives other “real” retailers a significant advantage in their relation with customers deriving from product knowledge
Starting from some of the surprising recommendations made by Amazon, Ben Evans looks into the nature of the business and concludes that Amazon does not, in any real sense, know what it sells. It knows a number, a size and a weight.
Product descriptions come from sellers. And in any case, the majority of items sold by Amazon are not sold by Amazon.
The important part of Amazon is its technology and its logistics. This is crucial for retailers to understand if they are to hold their own in the retail world.