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HBR On Strategy

Should Your Business Sell on Amazon?

Jun 26, 2024
30:06
Snipd AI
Hear Harvard Business School associate professor Ayelet Israeli discuss the pros and cons of selling on Amazon. Topics include costs, competition, data challenges, brand strategies, and the decision-making process for leveraging the Amazon marketplace.
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Podcast summary created with Snipd AI

Quick takeaways

  • Consider the downsides of selling on Amazon: costs, competition, and limited data access.
  • Maintain brand identity and loyalty while balancing Amazon presence with direct-to-consumer channels.

Deep dives

Considerations for Selling on Amazon

Selling on Amazon presents a dilemma for brands due to its reach and dominance in e-commerce. Despite its vast customer base, there are downsides including costs, increased competition, and limited access to customer data. Harvard Business School associate professor Ayelet Israeli provides a scorecard to help businesses evaluate if the Amazon Marketplace aligns with their objectives by considering factors like profit margins, product category commoditization, and shipping complexities.

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