Amazon, Google and Facebook: the next revolution is the challenge on eCommerce

Three months of lockdown have changed many habits and accelerated some trends already underway, including smart working and the growth ofeCommerce. In light of the 700 thousand new “digital customers” in 2019, an increase inonline shopping was expected. However, the forced stay-at-home of early 2020 has resulted in a huge leap forward of about 2 million new users in Italy in the first quarter of this year alone^.1

Nationally and internationally, it is fertile ground that is shaping up to be the next big challenge between such web giants as Amazon, Google, and Facebook. (Something similar to what we see going on, for example, in the Home Entertainment & IP TV sector with Apple and Disney attacking Netflix and Amazon Prime Video, and with Sky introducing WiFi offerings.) It is a complex and promising world, where we foresee paradigm shifts for distribution, retail and logistics. For each of these, it will become increasingly important to evaluate online sales solutions via eCommerce platforms.

With a view to environmentally sustainable and high-performance packaging to support Internet sales, Grifal provides access to Amazon Certified Testing and Packaging. The cushionPaper™ solution in particular enables:

• safeguard the director’s role of the distributor, who can focus only on sales;
• Provide integrated logistics that enable zero inventory to be held in stock;
• Combine just-in-time delivery with a wide assortment of formats.

Today there are several eCommerce platforms for B2B and B2C companies to navigate among. Let’s look together at a state-of-the-art analysis and comparison that highlights how Facebook and Google are moving to compete with Amazon.

Index

• Amazon: the eCommerce giant
  • Benefits
  • Disadvantages
• Facebook: eCommerce within everyone’s reach
• Google: the immersive shopping experience

Amazon: the eCommerce giant

Amazon is the quintessential channel for online product sales. According to the latest available data, it has more than 300 million active customers of which as many as half are enrolled in the paid Amazon Prime service. It is a worldwide store where you can buy and sell (almost) anything: books, clothes, appliances, furnishings…²

Let us analyze all aspects of the platform:

The advantages

1. Low investment that allows you to sell online quickly without managing too many different processes, as a customized eCommerce can.
2. Product variety: if your product is for sale on Amazon and the user is searching for something related, your merchandise will also appear in that user’s searches. Better visibility = greater likelihood of sales.
3. Visibility: recognized by all as a reliable eCommerce with easy purchase and eventual return processes.
4. Amazon is alogistics company: it directly handles all logistics, storage, packaging, and shipping of products to the customer.
5. Ability to sell on European Marketplaces using a single Seller Account.
6. Feedback and reviews: the review convinces the customer. A product with many positive reviews will be “pushed higher” by the platform’s internal algorithm.

Disadvantages

1. Brand awareness: Amazon risks making you “virtually anonymous,” and your image and values may fade.
2. High competition: the law of the market teaches that if everyone is buying there, it is because so many are selling there.
3. Low loyalty: 90% of Amazon buyers do not realize they are buying from a third-party seller. “Where did you buy your new garden umbrella?””On Amazon!”
4. Limited opportunities to have contact with the customer: the seller, except in special cases, communicates with the customer only through the platform.
5. Basic product sheets: it is the only space available to convince the user and stand out from the competition.
6. Fees: includes referral fees of up to 15 percent and logistics fees that depend on the size of the product (combating oversizing is also important here).
7. Potentially complex platform to understand: the interface is not very intuitive, especially for those less familiar with digital tools, compared to a classic eCommerce.

So is it worth selling on Amazon? Depending on the situations, there are mainly two case histories:

1. If you already have a physical business, manage inventory and want to try to differentiate sales channels, Amazon might be a good choice. It is advisable to carefully decide whether to rely on the logistics service or not, after a careful analysis of the costs to be incurred and the potential marginality.
2. If you already have an eCommerce business but are struggling to position yourself and make it known, Amazon could be an additional means of increasing sales but without completely basing the fate of your online business on Amazon, giving up your brand and trying to build customer loyalty.

Instagram Shops is also expected to evolve in the coming months, which like Facebook Shops allows sellers to create spaces and even insert video tags for live sales.

Facebook Shopping offers the user theability to customize the product(choosing from sizes, color, material…), to create an inventory to show the customer, and finally to pay directly within Facebook.³

From your e-shop you can see the entire collection, save the products you like best, customize the design, and place an order without having to leave the app or move to other websites. Facebook shopping will handle payment directly through Stripe (a payment platform) with a 2.9 percent fee and 30 cents per transition.
Customers can send messages to your e-shop through Messenger or Instagram Direct to ask questions, get support, check delivery status, and more. In the future, it will also be possible to make purchases directly in a WhatsApp chat, Messenger or Instagram Direct.

What are the advantages and disadvantages?

For those who are still undecided about building an eCommerce, Facebook Shopping could be a possible solution, with some due consideration:

• It is clear that the equipment, skills, and time to take good photos that convert is the same as a customized eCommerce.
• Having a proprietary site in which to upload products is recommended because it allows you to bring the prospect “to your doorstep,” avoiding “distractions” from other notifications or content on social.
• Currently there is no option to add a shopping cart on Facebook Shop, so you have to buy one product at a time by selecting the quantity.
• Uploading products: if you have a lot of products and have not set up an external eCommerce tool such as Shopify, you will have to manually upload your products.

Facebook Shopping is not comparable to a real eCommerce to date, but it is the fast and complete solution to start selling online. No special technical skills are needed moreover, it is foreseeable that the platform will evolve very quickly toward increasingly integrated features with Instagram and WhatsApp.

What is Google Shopping? It is the service that allows people to discover and purchase products directly from their smartphones or home computers, prepared forincreasing integration with the physical world, territory and distribution. The platform enables:

• View products for sale on online stores
• have a personalized home page
• Use the Google Lens app to search for products
• monitorprice trends

Users can choose to buy online, go to a nearby store, or go directly to other retailers on Google. The application is also designed to facilitate the purchase of products that are bought on a regular basis.

Google leverages its leadership position in several areas (e.g., Search, Maps) and takes advantage of all the features built into its various apps, especially from mobile: checkout is quick, easy, and secure, and every order is backed by a Google guarantee. You can also rely on Google’scustomer support for returns and refunds.

Currently Google Shopping is only available in the United States, but it will be expanded to other countries around the world. Keep following us for further updates.