The advantage of a great logistics network is predictability.
If I order from Etsy, I will drop $100 on a product and shipping. But when will I get it? I don’t know. Will it even arrive? Who knows?
With Amazon I know what I order is coming this week. That’s why I buy from them and no one else. It doesn’t matter that half their website is styled like it’s 2003 and I’m probably getting a counterfeit product.
Bingo. Predictability and consistency is actually hard to execute and scale.
I can order an iPad from Best Buy or Apple, but most of the time I'm never quite sure when it might arrive. Amazon, I know it should arrive tonight or tomorrow.
I tend to avoid buying many brands on Amazon because of supply chain integrity risks, but their execution is consistent and predictable. I can't say that about many retailers.
The growth potential and the customer satisfaction.
The sad reality is that a large majority of people don't actually use products they buy. They want the satisfaction of getting a new "quality" product and imagine it gives them status.
If I order from Etsy, I will drop $100 on a product and shipping. But when will I get it? I don’t know. Will it even arrive? Who knows?
With Amazon I know what I order is coming this week. That’s why I buy from them and no one else. It doesn’t matter that half their website is styled like it’s 2003 and I’m probably getting a counterfeit product.