Six strategic steps for Manufacturers and Wholesale Distributors to compete with Amazon Business in EMEA

1. Forming a new Alliance
2. Quantify your Exposure
3. Invest in Research and Analytics
4. Build your Future Facing Strategy
5. Define a new Business Model
6. Invest in integrated Technology

Amazon Business is rapidly expanding within the European B2B market, calling for a strategic approach from wholesale and manufacturing companies. Since its launch in 2015, Amazon Business’s influence has grown significantly, with many businesses now viewing it as a major competitor. Recent research from Unilog reveals that 52% of manufacturers, wholesalers, and distributors still lack a strategy to compete with Amazon Business.

It’s understandable that some companies are waiting to see what happens, given the platform’s relative youth. However, Amazon has repeatedly demonstrated its ability to dominate markets in a short time, making now the ideal moment to take action. Below, we present six key steps that can help wholesalers and manufacturers strengthen their competitive position.

1. Forming a new Alliance

Amazon Business serves as a platform that brings together specialized suppliers from various industries, giving B2B customers easy access to a wide range of products. Companies that choose not to collaborate with Amazon can consider forming their own alliances. By partnering with leading software companies, they can deliver a similar customer experience without depending on the Amazon platform.

2. Quantify your Exposure

Understanding the extent to which Amazon Business poses a threat is essential for an effective competitive strategy. Identify the unique advantages of your own offering, such as exclusive distribution rights or personal customer relationships. Consider offering additional services that add value for customers and help build customer loyalty and trust.

3. Invest in Research and Analytics

Amazon’s business model revolves around the customer and their preferences. To deliver a comparable level of personalized customer experience, it’s crucial to closely monitor customer buying behavior. Regular customer interactions, feedback sessions, and a solid technology foundation can help you gather and analyze valuable data. This insight enables you to take targeted actions to enhance customer satisfaction.

4. Build your Future Facing Strategy

Digitalization is vital for manufacturing and distribution companies that want to remain competitive in today’s market. Beyond e-commerce and customer-oriented technology, warehouse management, order management, and CRM are essential for providing a seamless customer experience. These tools allow you to expand your digital capabilities and provide customers with an experience they are accustomed to from major platforms.

5. Define a new Business Model

Digitalization doesn’t necessarily mean abandoning traditional business models altogether. Finding the ideal mix that meets customer needs is essential. By understanding which services add value for customers—such as phone support or personal interactions—you can make more targeted investments in channels that match their preferences. Ensure a single source of data for all departments to deliver a consistent experience across all channels.

6. Invest in integrated Technology

The success of a strategic approach is strongly linked to integrated technology. A centralized system with real-time, accurate data enables you to provide seamless customer experiences, expand your business model, and conduct data analyses. This type of system also supports further innovations, such as the Internet of Things (IoT) and Artificial Intelligence (AI), which help to enhance customer satisfaction and loyalty.

Conclusion
Developing a strategic plan to compete with Amazon Business is essential, even if its direct impact currently seems minimal. By acting proactively, you can retain customers and protect future revenue.

Author and Source: Gareth Carroll, EMEA Business Development Director, Oracle NetSuite