Amazon is taking over the world in physical e-commerce.
As of its last quarterly report in July, 2018, Amazon’s share of US e-commerce sales has reached 49%. If you stop and consider what they’ve accomplished, it’s an amazing feat.
Forty nine cents out of every dollar is spent on Amazon’s platform. And that increasing amount means less is spent elsewhere on the internet.
If you’re selling online, you need to think strategically
While Amazon has made it incredibly easy for consumers (myself included) to shop online, it’s also made one other aspect of online entrepreneurs’ lives (ie. your and mine) much more difficult.
Their dominance means that it will be much more difficult to make money online selling physical goods.
Forget about e-commerce arbitrage.
The future is in services
Like the real world, the online world is moving toward one where people who offer actual services are valued more.
Software is getting commoditized.
Physical goods are already (arguably) commoditized. Remember those hover boards a few years back?
To establish a real business, you need to be offering productized services. Stop letting the likes of Amazon commoditize your business to death.
So what can you sell?
The world is looking both for online and offline skills.
Personally, I like jobs that require minimal costs. That is, it doesn’t require a lot of materials to start. Restaurant businesses are some of the worst businesses, in my opinion, due to the high cost of starting up.
So what would be considered good services?
Here are some ideas:
- Education, tutoring, online training
- Lead generation and sales
- Business insights and analysis
- Creative personalization
Standardize but adapt
In order to built a thriving business, it’s important to standardize your offerings. Productized services is one way to ensure a consistent process is taking place so that you can scale your business.
At the same time, productization enables you to adapt and provide new offerings to ensure that your business stays with the times.
The tide of change is coming. It’s time to find the right currents to travel with.