Sunday, May 5, 2013

V-Commerce: Amazon's Newest Weapon Of Choice. Trumps E-Commerce.

Big Box Bricks & Mortar retailers continue to react in conventional ways to Amazon’s growing power, which opens new markets for Amazon to propel their annual $13 Billion (27%) growth via V-Commerce.
Thus Amazon is becoming the Death Star of retailing as we know it today – virtually unchallenged. This continuing disarray is outlined in Chart 1.
V-Commerce (Viral-Commerce): To effectively use one customer group, media group or product group for significant commercial gain.
Why Amazon Is Happy Breaking Even With Online Grocery   (See Article here)
“AmazonFresh could be the online grocery service that finally breaks through to critical mass, all helped by its lack of financial burdens and mastery of logistics.”
“It could also mean that delivery fees are lower, order size minimums are waived,”
“and it certainly could mean that home delivery and in-store pick up will never pay out using traditional metrics and full allocated costs.”
“Finally, Amazon views steady grocery delivery as a “powerful way to drive frequent customer interaction,” and opens up avenues to entice consumers to shop for other products with each order.”
A conventional fulfillment & delivery system using “Traditional Metrics and Full Allocated Costs” misses all the above, putting retailers directly in Amazon’s path, not to mention the loss of infinitely greater “Frequent Customer Interaction” and the incredible Third Party Profits therein – from the $8.7 TRILLION worldwide retail market – including Groceries, Pharmacies, Retailers and Restaurants. (US market equivalent is $2.6 Trillion).
Unbelievable opportunity awaits and most retailers are still in denial, even Walmart; thus giving Big Box retailers a wide open field to win.
For years we’ve been urging Big Box retailers to offer:  “(1) The Highest Level Convenience;   (2) The Widest Product Choice;   (3) The Consistently Lowest Price.”
Most retailers are positioning themselves as unique and entertaining places to shop.  However, when Amazon’s V-Commerce strategy is in full roll-out, there will be panic in the executive ranks of most major retailers.
Amazon’s V-Commerce strategic move in Groceries simply increases these Three Top Consumer Choices further in Amazon’s favor against you, stealing your customers, sales, profits & market cap – see Chart 1.
Although dinosaurs were helpless against the asteroid that destroyed them, Big Box retailers are not helpless against the coming Amazon asteroid.
Given the above:  you have the knowledge of what’s coming.
Given the following:  you also have the knowledge of The V-Commerce Solution:   A SuperCyberCenter® Mall with 30 to 60 minutes, 24 / 7 / 365,  Rapid Online Order Fulfillment and 600,000 Third Party Sellers with stores nationwide, including Grocers, Restaurants, Retailers, Pharmacies – virtually all purveyors of time-sensitive retail commodities. 
It’s a tactic that Amazon and Walmart cannot match, even though they both have similar structures.
The Only Thing Left You Have Not Yet Tried ! – A  SuperCyberCenter Local Area Online Mall – Unbelievable, But Now A Necessity – Chart 2 (Best Buy example)
A SuperCyberCenter Mall with your company name on the marquee is similar to having branding rights to venues such as: American Airlines Center, Best Buy Theater in Times Square, Staples Center in Los Angeles, FedEx Field in Washington, Bank of America Stadium in Charlotte, NC; Wrigley Field in Chicago and MetLife Stadium in New York and myriad similar other V-Commerce marketing branding examples. Those companies paid a fortune for such prized branding rights.
Amazon is close to reaching this Pinnacle of The Consumer’s Choice – but still has a mountain, or more, to climb – however, Jeff Bezos is trying very astutely and will eventually succeed.  Now is your time.
For the sake of all your constituents – relent and Test This V-Commerce Solution with us, starting in Buffalo, NY, lest the Amazon asteroid strikes before you have your defenses in place.
Gail Nichols, Vice Chair
The Now Mall


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