Doug Stephens, a retail expert and founder of Retail Prophet, predicts the online retail giant will fail in the next decade and explains why.
4 min read
At the moment, Jeff Bezos is the richest man in the world thanks to him Amazon, Your leading online sales company. However, the retail expert Doug Stephens, predicts the giant could fall and even go bankrupt in the next decade.
On your company page Business of fashion, the founder of Retail Prophet and advisor to some of the world’s most respected brands, predicts “the end of Amazon”.
“I think Amazon is going to decline in ten years and these are just some of the reasons.”Stephens wrote.
Amazon is following in Walmart’s footsteps
One of the reasons for the online trading platform’s possible bankruptcy would be that it follows the same patterns as other companies. Stephens gives as an example Walmart.
“Between 1962 and the early 2000s, Walmart led the retail business, beating dozens of small and large competitors. By 2010, Walmart had opened a staggering 4,393 stores, of which more than 3,000 opened after 1990. “explains the expert.
After a sharp drop in sales in 2015, Walmart was unable to establish itself in online retail. “The demise of the once impenetrable giant has shown that even the most titanic companies can fall,” said Stephens.
“Amazon uses a lot of technology, but the real magic is people.”
– Amazon (@amazon) 3rd December 2020
Amazon offers efficiency, but not a shopping experience
The specialist thinks it is dangerous that Bezos wants to keep the same long-term operating model. “In our retail business, we know customers want prices low, and I know they will in 10 years. You want fast delivery; you want a wide selection “said the mogul in statements taken up by Business of Fashion.
However, Stephens believes that people don’t just buy because they want the products as soon as possible. To wants the full shopping experience: Get out of the house, touch the products, compare them with each other, try new things or be inspired. In this sense, Amazon’s disadvantage is limited to online purchases.
The focus on customer service is lost
When a company has a leader as powerful as Jeff Bezos at the top it would hardly work without him. The expert predicts that the number of Bezos could dissolve or disappear as Amazon continues to expand. Then it is possible that you will lose your initial mission, customer satisfaction Prioritization of the optimization of processes based on numbers and data.
He also assumes that the company will be less innovative. “The energy that was once used to improve the business will be used up just working to maintain the organizational infrastructure.”Stephens noticed.
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Dough stephens mentions other reasons for possible downfall of Amazonlike the rumored toxic work environment and the migration of current partners to other, friendlier delivery platforms.
The combination of these factors could make Amazon suffer Losses over the next decade Y. be replaced by another similar company That offers better conditions for partners, employees and customers.