The Consolidation 2.0: Why Ecommerce Is Changing
Capitalism.com with Ryan Daniel Moran
Capitalism.com
4.8 • 793 Ratings
🗓️ 23 April 2018
⏱️ 32 minutes
🧾️ Download transcript
Summary
Host Information
Facebook: https://www.facebook.com/ryandanielmoran/
LinkedIn: https://www.linkedin.com/in/theryanmoran/
Twitter: https://twitter.com/ryanmoran
Website: https://capitalism.com
Show Notes
There have been a bunch of changes in the physical products world that have some people frustrated. Ryan’s been thinking about it a lot, and he’s come up with actionable advice to share with you about rethinking your ecommerce strategy, particularly if you rely on Amazon.
Another large consolidation is happening. We had one a few years ago, when Amazon was in a “Wild West” period, where you could white label almost anything, get a few reviews, put up some decent copy and make a good profit.
During that gold rush, people became lazy. This let companies that were doing really well squeeze out and buy up their smaller competitors, increasing their domination on the market. This made it harder for new entrepreneurs to get success with the same strategies
A similar thing is happening now, which means you need to change your strategy to stay successful.
The old way of doing ecommerce is over. Amazon has gotten hawkish about what you can do on the platform. Some of this is great, such as banning a number of black-hat strategies. Some of this is not so great, such as making it harder to market to your audience.
Is there still opportunity? Yes. Are all the good markets taken? No. Are there any lucrative, high-profit margin niches out there? Absolutely. Here’s how you can tap into that:
Go super microbrand. Ten years ago, you could sell protein powder and do very well. Now there’s dozens of types of protein powders out there, such as whey-based, keto, and plant-based.
They all make money on high-margin products. A lot of them didn’t even have to redesign their goods, they just had to rebrand to target a specific, small niche with their marketing. You can do that too with your own products!
Don’t be discouraged by the changes to the ecommerce world. Embrace the change and be the change!
Key takeaways:
- Another large consolidation is happening
- The old way of doing ecommerce is over
- Go super microbrand
Connect with Ryan
Find more amazing podcast discussions on FreedomFastLane.com.
Transcript
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| 0:00.0 | Listen, price is a terrible differentiating factor. |
| 0:04.0 | It's the worst differentiating factor there is. |
| 0:07.1 | You don't want to compete on price. |
| 0:09.1 | Believe me, you don't want to compete on price. |
| 0:12.0 | You want to compete on other things that allow people to pay a premium, |
| 0:16.2 | to justify paying a premium working with you rather than going to your competitors. |
| 0:26.2 | You're listening to Freedom Fastlane presented by Capitalism.com. |
| 0:30.6 | This is the show about building businesses and investing the profits so that you can live life on your terms. |
| 0:38.4 | And now your host, the future owner of the Cleveland Indians, Ryan Daniel Moran. |
| 0:50.1 | Hey, boys and girls, Ryan Daniel Moran here. |
| 0:53.7 | Welcome to Freedom Fast Lane, the show about being rich and handsome. |
| 1:01.3 | I don't know how to pivot out of that one. |
| 1:03.2 | Hey, listen, so today we're going to talk about some dreary things going on, |
| 1:08.3 | but we're going to fix them because I'm noticing some things going on in the |
| 1:13.8 | physical products world, the branding world, and I'm a little bit surprised by the response of |
| 1:21.6 | our community, by the response of those of you who sell on Amazon.com, those of you who sell physical products, |
| 1:29.4 | because what we're seeing right now is what I would consider the consolidation 2.0. A few years ago, |
| 1:38.7 | I warned physical product sellers, specifically Amazon sellers, that they were in, they were basically on the brink |
| 1:46.7 | of what I called the consolidation. And the consolidation was when Amazon fully matured and squeezed |
| 1:54.5 | out a lot of small entrepreneurs. And it absolutely happened. Because a few years ago, when the amazing selling machine |
| 2:04.2 | launched for the first time, when people started talking about Amazon and FBA and using it as a way |
| 2:10.7 | to sell products, the wide open West period was big enough for people to basically white label any product, put it on |
... |
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