1. Start from product
Product is everything. You have to have a killer product to scale. Something that nobody in the market has. Start from there. A great product is like Panadol, something that people will buy immediately without asking for a discount, without hesitation, and they will refer their friends and family as soon as they experience it.
Top tip for finding the right product: read three-star reviews on other products. These customers like the product enough to write a review about it, but something’s not quite right. And there’s your opportunity to fix it.
The bigger the gap you fill/the bigger the problem you solve, the bigger the return you get and the faster you scale. Always start from product. You should not have to struggle to scale. If you struggle to scale in the early stages, go back to the drawing board and work on the product. It either is not unique enough, or it’s not solving a big problem.
2. Be clear with your USPs
Five steps to determine what they are:
Come up with a list, what would your existing best customers do if your solution/feature/product did not exist?
Group all the alternatives i.e “hire an intern”, “do it manually”, “sleep on sofa”.
Rank them from most common to least common.
List all capabilities (features) that you have, that your competitors don’t have.
Focus on consideration features rather than retention features, why would a customer buy your product vs a competitor’s product.
3. Craft your sales story
Your story = your product. You scale together with your story.
Formula: Problem > Consequences > Current Solution (and why they suck) > Describe a perfect world > Introduce Product.
Example of one of our newer brands #makesense: your mattress sucks. The problem with mattresses nowadays is that they are disappointing. They all fall short because they are built for the mass. Every single one of us is uniquely different with uniquely different wants and needs, height and weight etc, so why do we settle for a mattress that is built to ft everyone? In a perfect world, we’d have a mattress that is built like Lego where we can swap in/swap out, and configure it exactly the way we like it. That is the mission with makesense. The new mattress is built literally like Lego so that customers are able to have the best sleep of their lives on the most personalised mattress in the world.
4. Be the small fish in a big pond
Determine a list of users who care a lot about your unique selling points, people who will be able to understand easily, buy quickly, don’t ask for discounts and who will refer friends. Create a list of people who would care a ton and ask yourself why they care. From here, you want to resist your entrepreneurial itch to want to conquer the whole world. Take a chill pill. Focus. Focus on positioning yourself in a ridiculously small market but one that will make you truly stand out and be the winner. Once you dominate one group, go after the next. Rinse and repeat. If you go after the mass market you’re doomed to fail (unless you have heaps of money).
5. People are key
Get the smartest people working with you who align with your values, who trust you and believe in your vision. That is absolutely the key to scale. You simply cannot do it alone.
This story was originally published on Inside Small Business.
The post Five tips on scaling an e-commerce start-up appeared first on Internet Retailing.
The new mattress is built literally like Lego so that customers are able to have the best sleep of their lives on the most personalised mattress in the world.
The post Five tips on scaling an e-commerce start-up appeared first on Internet Retailing.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
