The menace posed to branded items producers seems to be even higher. First, the broad, cross-category scope supplied by model aggregators—together with the biggest on-line retailer of all, Amazon—induces customers to start out their buy journeys on their platforms, the place they typically seek for product courses relatively than for particular manufacturers. This allows the platform to place its personal model entrance and heart, successfully decreasing product manufacturers to the function of suppliers.
Second, product manufacturers battle to distinguish themselves from opponents on model aggregators as a result of the platforms standardize product presentation on their pages, limiting brand placement and the flexibility to spotlight distinctive promoting factors. The web page design encourages customers to check manufacturers on a number of key options similar to worth or buyer ranking. What’s extra, product competitors happens not solely between manufacturers but in addition inside them, as a result of totally different retailers on the platform might provide the identical product at totally different costs.
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