Amazon can be a 'necessary evil' for small retailers around the world

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The visibility and accessibility offered by e-commerce and tech giants comes at a price for global retailers.

For Mike Hirschkorn, there's a simple, harsh reality when it comes to making sales: Amazon is a"necessary evil."

Retailers like Gorilla Sports rely on big e-commerce firms to get their products in front eager consumers seeking convenience and affordable prices. The difference, according to Hirschkorn, is a customer base of a"few hundred" or"few thousand" locally versus"millions" with Amazon. "It used to be that we were very keen to drive traffic from Amazon to the website because each sale was cheaper, but now we're spending almost as much as a percentage of our sales advertising on Google as we would be paying fees to Amazon," Hirschkorn said."Either way one of the big Silicon Valley companies is going to win."Consultancy PwC found 59 percent of the people polled in its Global Consumer Insights Survey shopped online at Amazon, JD.

"When you compare the different sales channels ... the others pale in comparison to the scale of Amazon," he said."We sell in the States on Amazon, as well as eBay, and for every 1,000 sales that we have on Amazon, we maybe have 3 on eBay."

 

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