The Brand Direct Selling Strategy Is Attacking Amazon'S Throne.

According to CNBC11 29, with the full launch of the shopping festival, the direct selling brand is challenging Amazon's leading position in the field of e-commerce. To a certain extent, this is attributable to an ecosystem composed of many companies, which provide impetus to big brands such as Warby Parker, Obs (Allbirds) and Glossier.

The system is made up of some of Silicon Valley's most popular start-ups, rising stars and veteran companies. Stripe, an Internet cross-border payment service company, provides payment services for direct selling brands such as Glossier and Goodeggs. Affirm, a consumer finance technology company, provides consumers with credit to buy more expensive items from the American furniture business Wayfair and the dynamic bicycle Peloton bikes, to help fashion fashion brand Hebe Lance (Everlane) and beauty brand Supergoop to manage the return of products; e-commerce logistics company ShipBob helps warehousing, while on-demand logistics and distribution companies try to challenge Amazon by sending the same day. From delivery to return, it can handle every step of the e-business process.

Some well-known enterprises have also joined the system, such as Canadian e-commerce platform Shopify and Facebook, Instagram, which has become a powerful tool for direct selling.

"The next frontier in competition with Amazon is the back-end," said David Bel, a co-founder of Idea Farm Ventures and a former professor at Walton business school. This is where companies such as consumer finance technology company Affirm, e-commerce logistics company ShipBob and Happy Returns can play a key role. The brand wins when the customer can distribute the payment, get the product quickly and return it easily. "

This may be particularly attractive to those brands who worry about sending sensitive data to Amazon, because Amazon itself may become a competitor. Amazon's own brand 206 Collective sneakers are headlines because they are strikingly similar to Allbirds's trademark wool sports shoes, and the price of this sneaker is only half that of Allbirds.

Another advantage of the control process is that enterprises can monitor and control the quality of products to a greater extent to better maintain their brand strength.

Geoff Flower, co-founder and general partner of Craft Ventures, said that consumers like to buy goods from companies and brands that meet their ethics and values. With the emergence of more and more large companies, consumers will have more doubts and concerns about how their data are used.

It's not just direct selling companies. Earlier this month, Nike cut off its relationship with Amazon. Now it is working with Shopify and Darkstore to distribute shoes to avoid the "grey market" problem when it sells products directly on Amazon.

Eduardo Vilar, founder and chief executive of Returnly, said: "the strategy of digital local brands to beat Amazon is now being used by Nike and Disney retailers to win modern consumers. Nike is trying to emulate the strategy of direct selling and cut off its links with retail partners. Disney is doing the same thing. "