Are the franchise, B2B and buying group business models doomed to fail in a rapidly growing digital-first world?
Are digital marketplaces the replacement?
A digital marketplace is any platform that connects buyers and sellers of goods and services and facilitates a transaction.
Amazon Business – is a B2B Distributor division – within the larger parent company Amazon.
Amazon Business
- launched in 2015
- revenue $10 billion in 2018
- 2021 it will hit $25 billion.
In the UK over 40% of all non-food purchases are digital.
Today digital sellers’ (B2B, Suppliers, Distributors) have the ability to multi-tenant, to sell their products and services across many – thousands of websites – with a simple app.
www.oneshop.com – is one example of a simple app with every tool you need to level up and sell more.
Clothing a seller can list on Depop, thredUP, and Poshmark in one click through sites like OneShop or Flyp.
Flyp allows businesses to Automate 90% of their reseller work. Do suppliers need distributors?
Amazon’s Business is increasing its share of the global b2b distribution market worth $70 trillion.
- AB’s capability includes how to quickly grow its technical expertise across sectors – often thought of as specialists.
- It uses advanced algorithms to breach the technical knowledge that has protected many distributors, B2B and franchises for years.
Amazon has built considerable skills and systems
- Its logistics capabilities are said to be better than the US military,
- It can distribute more products, faster, with greater accuracy and at less cost than its competitors,
- Amazon’s in-house marketing ( it is one of the world’s largest advertisers) and logistics capabilities make it a formidable competitor,
McKinsey reports that 95% of business leaders said they were willing to make purchases without interacting with people – forgoing relationships – #socialselling.
The moat that protected many businesses – personalised knowledge and customer relationships – is broken.
It is not just Amazon – Marketplace business models are taking the world by storm. The business model is
- innovating faster,
- investing in digital with faster, cheaper and more seamless buying experiences,
- increased marketing capabilities along with social selling,
There is hope – the experience of many distributors and franchisors in the US and Europe shows how to win against Amazon.
First, start early and go faster.
- invest more in digital and customer experience
- supply chain
- talent
- e-commerce capability
- tell a bigger story than just your products and services
- build a moat with social selling capability.
The challenge now is not when to start – it is where to start first.
Disruption is here – now it’s time to either ride the wave or be dumped.
Now the most valuable asset in the world today is attention.
The FASTEST growing businesses have one thing in common they get more attention on multiple social media platforms – every day.
- They get more attention first
- Next More engagement
- Influence and Sell More.
ACCELERATE DELIVERS MORE – 100x more organic ATTENTION + ENGAGEMENT – FASTER to Influence and Sell more within 100 days on average.
Without
- paid advertising,
- lots of content generation,
- and without doing a lot of outreach #socialselling,
Get our new quick-video case study of how we delivered 500x more attention in under 120 days – with real people.
ACCELERATE – provides a monthly subscription social media publishing + strategy service.
If you have read this far, thank you for your attention.
It means a lot. I hope this helped you even a little bit in better making sense of this topic. If so, please, share it with a friend who might also benefit from it.
Thanks for reading,
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David
