By Zack Kantor
"They are systemically productizing the entire company"
I co-founded a software startup in December. Each month, I send out an update to our investors to keep them updated on our progress. But the past month was a bit different — our industry (retail) is going through a transformation.
Instead of just writing about our “internal” news, I wrote about the impending apocalypse in the broader world of retail. More specifically, I included some thoughts on Amazon and why their commanding lead is only going to get larger. Amazon is the most impressive company on earth, and I think it is one of the least understood. A few people suggested that I post this publicly, so here goes.
My first company, an auto parts manufacturer, sold to Amazon both as a vendor (where Amazon issues purchase orders for bulk product) and as a “Marketplace seller” (where Amazon takes a cut of a third-party sellers’ products sold on Amazon.com) — so I have some insight into Amazon’s internal operations and initiatives that aren’t often publicly discussed.
I’ve followed AWS and Amazon’s other various offerings for some time, as well, and Amazon as a company has become something of a personal obsession of mine. I have some further thoughts on Amazon and the impending retail apocalypse that I wanted to share for those who are interested in the overall future of retail.
Consensus is that we’ve hit a tipping point and the retail industry is finally seeing some major collateral damage from Amazon’s monster growth — and mainstream/non-tech news has started giving this a lot of coverage. There is a lot of discussion about whether Amazon’s advantage is sustainable or whether other retailers (namely, Walmart) will be able to mitigate Amazon’s dominance as they start to replicate Amazon’s model. (Read More...)