Amazon margin compression prevents e-commerce merchants from building distinct brands
Amir Elguizy · 20VC: Why People Should Never Be Surprised If Fired, Subscription E-Commerce Is Hot & People Never Give True and Direct Feedback with Amir Elaguizy, Co-Founder @ Cratejoy · Jul 29, 2016 · at 5:28
Amir Elaguizy, co-founder and CEO of Cratejoy, outlines why traditional e-commerce platforms like Amazon compress merchant margins and destroy brand equity.
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“Marketplaces like Amazon and just increased competition on the internet in general are driving margins lower for e-commerce merchants. They're making it harder to differentiate or build a real brand because, I mean, I don't even know who I buy my things from anymore. I just buy them on Amazon, but that's some merchant somewhere on the earth that's actually the one that's making that sale.”
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