With the sales tax story, equating Amazon to Brer Rabbit begging the fox to spare him from the briar patch, we put a fork in our review of the convenience growth lever. We’re now onto Selection, that second of three growth levers in which Amazon – by virtue of its web-based business model – has a clear and distinct advantage over traditional retailers.
But as I’m prone to do, we’ll pick some more on Walmart (the embodiment of traditional retail success) en route to making the larger points about Amazon’s business.
Back to the Broad Middle
So far we’ve approached discussions of the broad middle exclusively from the left-hand entry point. This is where the right combination of investments in the growth levers (price, selection, convenience) will earn a retailer access to that middle part of the market. This is where the vast majority of customers reside, and it’s where they balance their overarching desire for low prices with their preference for convenience and a wide selection of products from which to choose.
Retailers that press the right combination of those levers win the patronage of the broad middle, increase their sales, and grow their businesses.
But there’s more than one way into the broad middle. There’s also a right-hand entry point. I’m saving the bulk of that topic for explaining the ways Zappos and Quidsi posed a serious threat to Amazon, but we’ll go ahead and take a sneak peak here to setup the Selection discussion.