Yes, it is true that Amazon has decided to withdraw its online domestic e-commerce business of 15 years, to be effective from July 18, 2019. But why Amazon has taken such a major step?
This is because Amazon is facing tough competition from various local online business operators and it also includes companies like Alibaba, Pinduoduo, JD.com. Although it will carry on its other services like AWS, Kindle e-books and cross-border operations but is this an early warning sign for other online market operators to provide the best service for surviving in this competitive era.
Competition is everywhere and the online marketplace is not an exception. Customers nowadays do complete market research before purchasing any product. Not only that, but they also validate the prices of the products on other websites and purchases products where they get the best offer. Even after the products are purchased they look for other customer services like- in case they are not happy with the product and wants to return back. The feedback and reviews of customers really matter in today’s world if any business wishes to survive in the long run.
As different companies are making their online presence for selling various products it has become absolutely necessary to come up with innovative ideas which will make them different from others. Building websites and creating online presence will not help any business to grow substantially. The website should have engaging content and user-friendly features with the potentiality to attract its customers. As future generations are constantly looking for something extra.
Amazon invested $75 million in the year 2004, still, it experienced a very low profit. Now, it can focus on its business in India but even in India, they will face a tough competition since Reliance Group will soon launch its online portal selling everything from food to apparel.
Thus, we can understand running an online business is not easy and it includes several challenges too.