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HBR On Strategy

Should Your Business Sell on Amazon?

Jun 26, 2024
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.
30:06

Episode guests

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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