HBR IdeaCast Why Companies Decide to Sell on Amazon—or Not
11 snips
Aug 23, 2022 
Ayelet Israeli, an associate professor at Harvard Business School, explores the complex decision-making process for brands deciding whether to sell on Amazon. She discusses the platform's advantages, such as reach, and the downsides like competition and data limitations. The conversation covers crucial strategies for maintaining customer loyalty, navigating genuine reviews, and managing Amazon's challenges. Additionally, Ayelet highlights the importance of data insights while sharing a case study of a cereal company successfully boosting direct consumer engagement through Amazon.
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Consider Amazon
- Every brand should consider selling on Amazon due to its massive reach.
- It's crucial to be present where customers are, and Amazon dominates online retail.
Amazon vs. Walmart
- Selling on Amazon is compared to the past dilemma of selling through Walmart.
- While both offer vast reach, they also squeeze profit margins for brands.
Margin Squeeze
- Consider the impact on profit margins due to Amazon's fees and advertising costs.
- These costs can significantly impact profitability, similar to Walmart's squeeze.