104. Innovation Two-Step: Core Renewal and a Cloud-Based Value-Channel

The Present Facts

Amazon (AMZ) is building out the first value channel from end-users back to factories. And of course, this channel is a cloud-based digital channel. The customer-centric channel is comprised of 10+ intersecting, reinforcing, winner-take-all platforms starting with the 60MM Prime members in the U.S. (100MM+ worldwide). This monopoly capability will allow AMZ to sell into, and/or collect fees from, all verticals that sell anything to Prime members.

This cloud-based value channel has breakthrough advantages over legacy, product-push channel players. Hence, there is insane loyalty from Prime members and astronomical sales growth.

But, there are B2B product and value activities that AMZ’s infrastructure can’t (yet?) handle, such as:

  • The one-stop shop, integrative replenishment systems that distributors can co-create with large progressive customers. (Distributors! Get the analytics to do this better.)
  • SKUs that are freight-sensitive, processed, assembled, and/or temperature-controlled
  • Channels protected by varying federal and state laws (alcohol, tobacco, auto franchises, etc.)
  • Walmart-type, cross-docking distribution centers for top volume consumer items

Emerging and Predictable Trends                                                                                            

AMZ’s ambition and ingenuity astounds. They will invent ways to circumvent many existing B2B barriers to nibble or chomp into more B2B channel sales.

For instance, 5G bandwidth service to mobile phones will be here in 2022. AMZ will be streaming multimedia product infomercials to ever better-targeted customers. Prospects will be offered shopping reward points — paid for by producers for leads – to watch the infomercials (An AMZ patent).

Millennials will be taking over digital buying and they don’t want any just-in-case rep calls. And, some resellers or AMZ clones will be priced without outside and inside rep costs bundled in.

The big brands must follow the digital buyers. They will be forced to compete with ever better product information on AMZ’s site, or clone knockoffs will steal share.

Amazon Web Services continues to turn AMZ’s digital cloud capabilities into APIs to allow all sellers to create cloud omni-channels. You will hear the terms digital supply chain, and ecosystem more frequently.

What to Do?

See these future-shock trends that are converging and get Line-Item Profit Analytics to:

  • Perform a customer-centric core renewal of your business by requesting my “Roadmap” from bruce@merrifield.com
  • Become more profitable, agile, and innovatively courageous
  • And, see how and where to defend against AMZ, partner with them, and out-niche them for the biggest, best accounts.

Want to know how? Attend one of my forthcoming one-day seminars listed here:

http://merrifieldact2.com/amazon-business-defend-against-partner-and-out-innovate/

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