Why Shopify is winning the rebel war
Everyone in the e-commerce world has competition, in fact the competition is the same for everyone. You probably know who I’m referring to. Yes that’s right, Amazon. I wouldn’t go as far as calling them the Dark Side but they are pretty close to it in my mind.
“Amazon is building an empire, and Shopify is trying to arm the rebels. So maybe some of our customers might compete with Amazon, at some point, but that would be like super cool, and we’re not there yet.”
— Tobi Lütke, Shopify Founder and CEO
Now, I am not 100% sure on Shopify’s intentions either since I don’t work there, but in my view they are the hero we need.
Amazon is moving at lightning speeds through the e-commerce and business worlds, combining the expertise of thousands of the best talent from around the world. They are destroying everything and everyone who stands in their way. Amazon is the ultimate business that exceeds all business book advice of how businesses should be operated. It seems like nothing can stop them.
Brands
The one thing that has the power to stop a behemoth like Amazon. And not just any brands, revolutionary brands that are fighting for fairness, equality, quality, and a better world for all.
Including myself, many from my generation care about the environment, sustainability, and a vision for a better world. While I enjoy fast delivery, it is not on my priority list anymore. I will fair for a product that offers great customer service, that strives for sustainability, and prioritizes worker rights.
The biggest Amazon becomes, the more out of touch with these values they become. What I keep finding disappointing on Amazon is the increasing number of cheap knockoff brands. You have probably seen this. Search for workout gear and you get 50 results of the same product with different branding. There is no accountability for these brands. They buy from the lowest bidder overseas and most of the time they aren’t in control of what goes into the product. They aren’t in control of how the workers are treated and they sure aren’t in control of the environmental impact they are making.
The difficult part
To achieve everything I mentioned is not easy. Having started multiple business ventures I understand the struggles that are involved. Starting with self mastery, moving to business planning and finally the execution. None of those are an easy task. Starting a sustainable business that can compete against giants is an even harder task.
Shopify makes one part of that easier. One less thing you need to struggle with. One less expense on your business budget. One less thing to worry about. Shopify just works, it’s easy, and the company is something that you can get behind. They at least seem to have the right motivations for their “why”.
Why Amazon is losing the battle
In recent years, Amazon has started to compete with their merchants. If they see a product doing exceptionally well, they will copy the product and underprice the competition. Since they don’t care about profit and can literally inject an unlimited amount of money into the company, they will squeeze out any product. Additionally, they also control the search results and what their customers get to see.
The merchants on their platform are not happy about this. No one wants to work hard to build a great product just go have the marketplace undercut you. Many brands on Amazon are doing everything they can to take their customers to their own websites (many of them built on Shopify). Not to mention that Amazon takes a hefty percentage of each sale from the merchants. So essentially, the merchants are funding their own execution. Eventually, Amazon will destroy their relationship with enough merchants that the platform will only be filled with knock off products. It is already happening. The majority of brands that are big enough have already left Amazon and are building their own sales channels.
I believe Amazon is at a major vertex in their journey. The way they have been building their business has worked thus far, but if they don’t change, they will start to see a big portion of their customer base leaving their platform. My girlfriend, for instance, cancelled her Prime account this year. She is amongst many.
Amazon has focused on growth in the past years, now they need to focus on sustainability.
