Many e-commerce companies cower in fear of its industry leader, Amazon. In just a few short years this online retailer has grown to gather nearly $178 billion in 2017.
Through several key strategic moves such as its recent acquisition of Whole Foods, Amazon has been able to successfully eliminate or minimize the impact of its competition. This wild success leaves many within the e-commerce industry to wonder where exactly they fit.
Fortunately, changing consumer purchasing patterns are helping to provide and even bigger market for all online retailers. But how exactly does a small e-commerce company successfully compete in this type of fierce environment?
Niche Market Strategy
Many e-commerce companies have found a solution with a niche marketing strategy. This type of strategy focuses on an unmet or underserved need of consumers. Since the need is not being met appropriately, these niche brands are providing services that do just that!
Many would assume that a company as large as Amazon would have it all, right? Wrong. Brands like Boxed, Brandless, and Dote are all filling in this needs gap, and as a result that have each seen pretty remarkable results.
Boxed works to deliver bulk consumer goods without any sort of a membership fee. This company recognized that urban consumers struggle to purchase in bulk because of a lack of transportation.
Many people living in large cities do not own or regularly use a vehicle, instead opting for public transportation. This makes it impossible for such travelers to lug home bags upon bags of products.
Boxed perfectly caters to this need by providing large amounts of bulk goods delivered right to your door in a conveniently short amount of time. By carving out this specialized section of the market, Boxed has been able to enjoy substantial profits after finding ways in which they can reduce damage rates to packages, according to Adweek.
The company Brandless has been able to achieve many of the same positive results by implementing its own unique niche marketing strategy. Brandless primarily operates as a company that provides complete honesty and transparency to their customers.
Brandless carries thousands of products that do not have any association with a particular brand. This generic packaging and advertising cuts significant costs and allows consumers to bypass the usual marketing jargon and head straight to the actual product and its contents.
This strategy is effective for two reasons: it saves money and it makes the consumer feel more informed and aware of the products they are purchasing. Such abilities have been incredibly popular with the Millennial generation.
This company specifically targets young women by creating a “mobile mall” that they can shop through using their phone. This single platform combines apparel from more than 130 retailers, which allows consumers the ability to shop through thousands of different items all at once without having to travel to each individual website.
Dote has succeeded in creating a personal and comprehensive experience for their users, and it is all easily accessible to boot. Consumers have become so enthralled with Dote that according to Adweek, they visit the app an average of 3.9 times a day.
All of these brands have achieved greatness, even in the wake of powerful e-commerce giants like Amazon. The key is to differentiate in any meaningful way that you can. While this may not necessarily be the one and only strategy, it does seem to be quite effective.
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