Why Amazon has a chance to succeed in Poland?
Amazon offers billions of products that reach the world’s largest markets. For Polish customers, this means that you can buy products from distant countries at very affordable prices. As a result, entrepreneurs will have their hands full – not only because of possible much higher turnover, but also because of increased competition. Amazon can quickly become a major player in the Polish e-commerce market with such a wide range of products.
Amazon may set new standards for e-commerce
One-click ordering, secure returns, service Prime The most popular e-commerce service in Poland is the e-commerce platform with same-day delivery (mainly in big cities) or Amazon Prime Video (streaming service) are facilities that are not yet popular among Polish users. Such actions can define a new consumer experience (ang. customer experience), which will undoubtedly revive online sales in the country on the Vistula river.
Amazon is building another logistics center in Świebodzin, which will enable Amazon Prime service in Poland. The American giant has existed in the consciousness of Poles for several years. Introducing logistics centers in our country and employing thousands of people made the company recognizable. Amazon, thanks to its rapid development and implementation of innovations and improvements in the logistics process, has become a kind of model and inspiration for local companies. Moreover, in the countries where Amazon provides its shopping services, it also bets on advertising, is highly visible in urban spaces and on television. We can expect a similar phenomenon when Amazon enters the Polish market.
Amazon.pl an opportunity for small and medium-sized businesses?
Polish entrepreneurs have already been invited to cooperate. Companies planning to sell on Amazon can register their accounts on sell.amazon.pl. You can prepare for this kind of revolution in Polish e-commerce right now. There are several important things that need to be worked out before the giant enters the Polish market.
- Mastering how to successfully sell products on Amazon, taking into account the opportunities but also the risks of operating on such a platform.
- The number of Polish users will soon increase significantly, however, one should take into account the longer waiting time for account verification and activation.
- Developing a business plan with an expert who will tell you how to optimize your operations to not only acquire customers but also to create a loyal audience.
From observing Amazon in other markets, you can see that it is aiming for a large expansion and penetration of the markets where it is available. If a company plans to expand to European or global markets, Amazon will undoubtedly help in this process. Increased competition can cause a lot of trouble. Sellers of branded goods should automate the sales process as much as possible using Big Data technology, among other things. Meeting all the requirements can be quite a challenge for Polish entrepreneurs. Some of them may not be ready for the clash with the giant, and stores with low quality will not have a chance to exist on Amazon.
Building an e-commerce strategy
One of the most important activities in commerce is pointing target group – Who the consumers are, where they live, their age, gender and average income. These are the basic factors that need to be acquired, they can be deepened by focusing on consumers’ lifestyles and values. The next stage is the selection promotional activities, The manufacturer sells his goods at wholesale prices and Amazon resells them on its platform. Nowadays we have a wide range of options that will strengthen our brand awareness and build trust towards it. Social media, influencer marketing, discussion forums or price comparison sites, on the other hand there are activities such as loyalty programs or cross-selling. Indication communication channels allows us to show where our target group is most active. The choice of channels is important because it has to be tailored to the people you want to reach. You should also remember to avoid publishing on weekends, as this is a kind of rest time from social media – the exception is activity on Facebook. We divide social media into those connoting work (Twitter, LinkedIn) and entertainment (Facebook, Instagram). Increased user activity in the morning is for the former, users on Facebook and Instagram are most active at lunch and evening times. Building credibility is one of the most important points to focus on and spend a lot of time on. Once you have identified your target audience, the values they hold and the communication channels on which they are active, you can begin to build your message – and thus your credibility. At this stage, the form of the message and the way it is communicated are constructed. What tone to take – friendly or formal?
Amazon’s success lies in the business model chosen
Amazon Vendor Central is a sales model where a business provides goods to Amazon in bulk quantities and Amazon sells them on their behalf.
The business model assumes two options:
- Amazon Seller Central (Third Party Sellers is based on the assumption that the seller himself sells his products through the platform.
- Amazon Vendor Central (First Party Sellers) is based on B2B cooperation. The manufacturer sells its goods to Amazon at wholesale prices, while Amazon resells them on its platform.
Vendors in the Vendor Cental model are the owners of brands registered in the European Union Office for Foreign Trade. Intellectual Property. This option is only available to those who have been invited by Amazon and cannot be started on their own. Recruiting teams search for promising brands and products with potential and possible success in the retail market. In Seller Cental, the seller profits from selling products to customers, while in Vendor Cental, the seller profits from working with Amazon.
The first option is to interact with your customers. There is an opportunity to set a retail price, and the seller is charged a commission for processing the order
and it is the producer who is responsible for customer service. Sellers who decide to cooperate based on the Vendor Central model may be better perceived by their customers – Amazon’s logo on the platform may increase trust. Vendor Central from the seller’s perspective is faster to operate, it only requires regular delivery of products to Amazon’s logistics centers, and the promotional process is more convenient with access to Amazon Marketing Services.
The US giant allows the use of both Amazon Seller Central and Vendor Central. It’s called a hybrid model, and it’s the ability to sell your products, even when Amazon orders negligible quantities. You can then use the Amazon Seller option. Combining these models allows you to reap the benefits of both – for example, the ability to promote in AMS and interact with customers that only Seller Central allows.