Tech giants, microbrands are challenging Amazon’s e-commerce dominance
Amazon no longer holds monopoly in the Ecommerce market, every since adobe has acquired Magento the game has changed.
After salesforce acquired demandsware and hybris acquired SAP there’s a pattern of changes in the ecommerce market. It’s a straight fact that brands want to use Amazons display shelf to get an introduction into the ecommerce world and the advantage of brand visibility but those brands who want more closure with their customers and build strong relationships with them, will opt for other ways of commerce which involve direct to customer ways.
Adobe betting $1.68BN on Magento has sent signals across the ecommerce industry sending the message of a change to be expected in the ecommerce market highlighting the image of Amazon in the market.
The Tech giant and the next leading edge
Those brands that deal with technology have acknowledged that e commerce is becoming the new way of commercialization and digitalization. Micrososft has joined hands with adobe but the real question is are they looking forward to dig in their own acquisition? Oracle also comes under the same list of companies who might be looking for new players in the market despite having their own platforms and Bronto ecommerce under its umbrella. Ecommerce has become more significant for big tech. if we take a look at the multiples they are such that Magento commanded 11.2x; Demandware,11.8x.
If we observe the ever growing revenues of Shopify ecommerce can be seen as the most interesting and positive part of retail in the coming years.
Microbrands go Macro
But interesting and exciting is not enough! Ecommerce needs to win the confidence of the people. “love letter to microbrands” published by adobes chief product officer scott belsky in march serves as a validation of magentos primary back to back customer base and branding which will give high returns tomorrow. It can be said that the microbrand industry might exceed $140B in sales this year on the basis of gross merchandise volume forecasts for Shopify, Magento and BigCommerce.In comparison to Amazon’s $186B, “micro” looks misplaced.
Moreover the ecommerce industry includes the diusruptor brands (like Meghan Markle’s favorite, Birdies Slippers) are already known to be doing pretty well with their high style value in the market, but Adobe’s has raised the bar by offering a higher standard in content and design.
Tech entrepreneurs for the win
Magento has thrived throughout the time it has entered the market, it has supported microbrands and helped them grow under the throne on which Amazon sits. Magento has managed to connect the global ecommerce community–merchants, tech partners and eCommerce-expertise agencies like BORN and Gorilla Group–to move the industry forward as a whole.Magento has climbed all the stairs one by one stepping from open source platforms to acquiring eBay and from there joining hands with adobe. Creating the value of your brand takes a long time and many stepping stones.
So, who will win?
As the ecommerce industry is growing in size scope and influence the abilities of ecommerce will always be under question as to what else can they offer? But the most important question is who will make history in the ecommerce market and build the next best brands?