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Oct 07, 2022 - 04:27 PM
Amazon’s quiet acquisition of Veeqo in November of 2021, and their subsequent launch of Veeqo as a free shipping software, have been reasonably met with mixed reactions in the market.
For anyone unfamiliar with Veeqo, the company was founded in 2013 and helps users manage their eCommerce ventures across various platforms from eBay to Shopify, Walmart, and of course, Amazon.
The software helps retailers to sync inventory across platforms, automate shipping, track and purchase inventory, and report and forecast merchandise.
Before the takeover, the average subscription was $450 a month, but now it’s completely free, and eagle-eyed folks are getting suspicious.
From a business perspective, here's what we think about Amazon’s decision to offer Veeqo for free.
Veeqo: Amazon’s Bait to Increase its Market Share
Amazon is already the largest retailer in America, bagging 40% of all eCommerce sales in the country, but even that isn’t enough for the eCommerce giant; it still wants a bite from the 60% currently shared by other players like eBay, Shopify, Walmart, and Etsy.
Amazon has always had an eye for dominating eCommerce, which is why it started Multi-Channel Fulfillment and entered into competition with other logistic brands like UPS, Shopify, and FedEx.
And although Amazon had been fighting an uphill battle trying to increase its market share, with Veeqo, they’ve gained instant access to the customers of the 25 leading eCommerce software. And it’s only a matter of time before Amazon controls most of our eCommerce activities.
That said, let’s look at this from a customer perspective.
Amazon: Giving Customers a Seamless Shopping Experience
Amazon prides itself as the most customer-centric brand in the world. And so far, their actions have matched their claims. Amazon offers excellent products and services like Amazon’s Prime, Fulfillment by Amazon, Kindle Direct Publishing, Fire tablet, Fire TV, customer reviews, personalized recommendations, 1-Click shopping, Amazon Studios, The Climate Pledge, and Amazon purchase of Whole Foods.
Across all these industries and services, the single thing that stands out is Amazon’s fierce commitment to the customer, something that’s reflected in its four guiding principles:
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Customer obsession rather than competitor focus.
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Commitment to operational excellence.
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Long-term thinking.
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Passion for invention.
Conclusion: Amazon’s Obsession With Customer Data
Amazon is well-known for its data-driven decision-making philosophy. Data analysis is so integral to Amazon that it's not difficult to detect evidence of an almost fanatical preoccupation with data analysis in their products and services.
And seeing that Amazon already handles a significant aspect of our data, it’s pretty concerning that they’re slowly gaining complete control of our eCommerce data.
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