Friday, February 15, 2013
Can anyone be Amazon.com?-2
I said maybe because what Amazon is doing is being done by dozens of other websites too like overstock, buy.com and other smaller sites but what Amazon had is that they were the first one to come in and they have massive economies of scale and a recognizable name which makes it easier for them to raise cash and draw more customers to their site. You will need to start small and then build up your business but even if you aspire to be the next Amazon, by the time you have done it the original Amazon may have gone too far to be caught by anyone. You can still try to make it big but only in some areas which they are not dominant but again you will need massive amounts of capital for that including starting where you put your merchandise till the time they are sold meaning the warehouse. And as you well know, they have massive amounts of cash just lying to be invested and they can experiment with that money without the fear of loss. Additionally they may also have massive lines of credit and investment and connections with top manufacturers. So in theory you can still compete with Amazon but maybe you would have to a steep learning curve in doing it since they are in the business for so many years that you need many years just to catch up to today's Amazon. So instead of discouraging you not to take on the number one online retail website in the world, you can still pursue to be number three and beyond ( number two is still the biggest one but since they are way behind Amazon, you may need massive backup to catch up to them but you can still can).