I've gone through a few courses that teach how to make money by selling products on Amazon. The content is solid and I think the case studies are real but I just wonder, why would anyone buy from a small Shopify store when they can find the same or similar products on Amazon, likely cheaper and with faster shipping?
The key is in the value proposition equation, which challenges this:
If I am your ideal customer, why should I buy directly from you rather than Amazon?
Before I put together a very detailed response on how to answer that, I’ll provide a quick answer from my personal experience that answers this equation.
So why do I buy my tea directly from Harney and Sons website and not from Amazon? I LOVE their tea and when I run out I hate it. (My fault) But I choose to wait on their shipping rather than use my Amazon prime. And I choose to pay any difference to them rather than save an extra buck on Amazon
Why?
1. I noticed that the tea I get directly from Harney and Sons is much more fresh and potent... whereas everywhere else, it doesn’t seem as fresh, even though it’s the same exact brand and the expiration date is far from near (could be just my perception too..)
2. Loyalty points for free tea / stuff in the future. Can’t get that through Amazon
3. I get free random tea sachet samples in every shipment. It is one of the joys of getting a box from Harney... cause each time I get to sample a new tea and hope I get an extra sachet I really like for free
4. Exclusive site-only new flavors. When they release a new one, or a popular flavor is no where to be found, they will be the first, and as a customer, I am first to know.
5. Catalogs and special deals. They don’t just do %off deals... they do other unique promos including free special infuser mugs and stuff. I love that. Can’t get that from Amazon, and the price differential isn’t enough for me to buy it separate.
6. Special relationship - if going directly to the source isn’t enough, they treat me like I’m the first to know and first to get.
And more
So... it all comes down to answering the value proposition question. The common denominator here for Harney is tangible relationship benefits on top of the freshest version of their product.
Some people will buy from their friends store rather than Amazon because they are their friends. If a company can create that expectation and maintain that feeling, that’s how they beat monster superstores. It goes back to construal theory and our need to belong and also distinguish.
But you can’t assume people will figure it out. You’ve got to spell it out.
More to come...
-Jon
Let's think about HOW to answer the value proposition equation. There are four elements:
While waiting for a proper answer from a pro since im also curious:
Personally as a consumer I don't care if it's Amazon or a custom site that is selling me what I need. I'd actually prefer a smaller shop to Amazon because I don't want to support a monopoly in the making. in Europe Amazon is certainly not faster than most local shops, but cheap they are indeed...
Sidequest: Funny thing is... I first bought Harney and Sons tea to try by ordering from Amazon (prime), even though I initially stumbled upon on their direct site.
Once I knew I liked the tea, they did a good enough job communicating on their site to convince me to go through them direct instead of go through Amazon. And because my wife saw some flavors and configurations (amounts) she wanted to try not on Amazon.
And they know this. That's how they USE Amazon. And then they had me at the welcome series email campaign. My wife swears to me that the actual Mike Harney (president) emailed her. I, as an email marketer, know the truth... but the impression hit her hard and she still fights tooth and nail with me on that.
Value proposition.
So the point... if you're going to have a small shopify store selling products that are also available on Amazon for slightly cheaper and faster than you... you BETTER have some sort of value proposition if you want to really stay alive over the long term. And it needs to dip into the subliminal a little bit, preferably in the playing field of construal theory.
I think Jon is answering a somewhat different question. Many Shopify stores are reselling products, not creating their own. I believe the original question is why would someone buy one of these products from a Shopify store instead of Amazon, given better prices and faster shipping. The answer is that, in most cases, they won't.
Actually... i'm answering the same question. The value proposition equation applies here too. And you're right... without a value proposition for themselves, there is no reason why they should be chosen over the cheaper, faster answer of Amazon. They are living, if at all, on pockets of ignorance.
No one brags about a delicious McDonald's meal. But everyone has eaten one.
Jon's response settles it all. While we would use cheap stuff all the time, that feeling of being affiliated to a small brand by far overrides cheaper faster shipping from Amazon.
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