Last week, the NY Times had an article about how Amazon is successfully becoming the Wal-Mart of the web.
It’s an interesting comparison.
Wal-Mart was founded in 1962 as a discount department store. It is now the world’s largest public corporation (by revenue), and is the United States’ largest grocery retailer and private employer.
Amazon was founded in 1994 as an online bookstore. It is now the largest online retailer in the US. Moreover, sales of media products in the US — the books, movies and music that it started with — has been surpassed by sales of other merchandise on the site. Soon the same will be true worldwide.
What began as an online bookstore has become the biggest online general store.
According to the article, many believe this is a great place for Amazon to be and has caused its rivals to scramble to compete:
In August, Target, which allowed Amazon to run its Web site for the last decade, announced it would end the affiliation when its contract was up in 2011, following other one-time Amazon partners like Borders and Toys “R” Us. This month, Wal-Mart said it would allow other retailers to sell their products on Walmart.com, mimicking Amazon’s third-party marketplace and trying to match its vast selection. Analysts believe Sears, which owns Kmart, is preparing to allow outside sellers on its sites as well.
But the Amazon effect may be most deeply felt by small independent stores, which cannot hope to compete with Amazon’s selection and prices and recall in fear how the company hastened the fate of both independent booksellers and prominent electronics chains like Circuit City.
It seems the retail giants are in a race to see who can offer the biggest online selection of goods, the first to reach “the holy grail” that is endless lists of products. It’s a race that Amazon is winning and from which it is building a big business ($40 billion big!).
However, the article goes on to highlight that in niche, passionate categories these massive lists of products do not create the same advantages for Amazon and other retail giants:
In markets like consumer electronics, where Amazon increasingly prevails, products like HDTVs from different companies are usually made by the same Asian factories, with little technical difference between brands. Shoppers then look for the best price and most convenient delivery, which Amazon can offer.
But the dynamics are different in categories like outdoor sporting goods. Different companies offer drastically different products, and the right brand of bicycle or snowboard matters to enthusiasts. Shoppers might also prefer to seek the guidance of an experienced sales clerk.
For many of us, and for many passion categories, shopping is more than a transaction. It’s an experience, an extension of our passion. It’s meaningful and thrilling. For us, Amazon and Wal-Mart leave us longing for more.
Sam Walton, the founder of Wal-Mart, once said “Each Wal-Mart store should reflect the values of its customers and support the vision they hold for their community.” I’m not sure this holds true today, making the Amazon comparison even more interesting. In response to Walton’s quote, Matt recently wrote:
Wal-Mart isn’t the same place as when Mr. Sam was alive. He understood that shopping is about people. You won’t find that feeling at Wal-Mart today, as humanity and expertise has been brushed aside in favor of large amounts of inventory and self-serve checkout lanes. Get in, get your stuff, and get out.
…Shopping needs it’s humanity back. There are still some stores that offer a human experience — John discovered a magic shop in New York City that does. We remember these experiences, where a passionate shopkeeper brightened our day, gave generously of his time and expertise, and inspired us to share in his passion. We almost always leave with a bag in our hand and a smile on our face. We pass the story on to our friends and family.
OpenSky is bringing it back, and taking it online.
OpenSky and its network of expert Shopkeepers don’t aspire to be the Wal-Mart of the web.
OpenSky aspires to connect consumers to experts and the products they love. OpenSky aspires to help its amazing Shopkeepers maximize revenue from their influence. OpenSky aspires to bring humanity back to shopping.
- kevin ambrosini
Yup, Amazon is most certainly the Wal Mart of the web. But hey, I guess there is a place for cookie cutter selling considering both Wal Mart and Amazon are hugely popular and continuing to post profits.
Still, not everyone falls into the cookie cutter mold. Some of us are just sick and tired of profit without a face and storefronts and websites that look and sell like all the rest.
Slowly, but surely, the consumer’s soul is being awakened and asking for more of a reason to consume. There will always be shoppers who can force themselves to “shop to save” because they feel they must. Still, there are others who will shop to save the planet, their local market or even a great website that gives them a reason to direct their consumerism down a more passionate and moral path…because they feel they must.
Hugs to you and yours. The work you are doing here is most definitely not going unnoticed.