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Abstract
For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers - and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-Bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand. For teaching purposes, this is the commentary-only version of the HBR case study.
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Abstract
For a company that's trying to reach more customers, selling on Amazon might seem to be a no-brainer. But there are plenty of risks: A firm might get dragged into a price war with low-cost competitors, and Amazon, not the firm, will own the data on customers - and could use it to create its own competing products. In this fictional case study, the head of marketing at a young e-Bike maker thinks through the pros and cons of selling on Amazon and of sticking with a direct-to-consumer strategy, and considers the long-term implications of each for his brand. For teaching purposes, this is the commentary-only version of the HBR case study.
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