Episode 13: Maximize Sales with Amazon Marketing
The Evolution of E-commerce: From Brick and Mortar to Amazon Dominance
In the ever-changing landscape of product development and sales, one entrepreneur's journey sheds light on the transformative power of e-commerce. From the early days of brick-and-mortar retail to the rise of online platforms, the story of Shaahin Cheyene paints a vivid picture of the industry's evolution. Shaahin, a product developer, inventor, and formulator, ventured into the health and wellness space at a young age, establishing his first company at 16. By the time he was 18, his products were generating over $350 million in annual revenue, primarily through traditional retail channels.
During the initial stages of his entrepreneurial journey, the internet had not yet become a dominant force in the world of commerce. Selling products meant securing shelf space in brick-and-mortar stores, such as GNC, Walmart, and Urban Outfitters. However, as the internet gained traction in the mid to late 90s, a new channel emerged: eBay. This online marketplace quickly became a hotbed of activity, drawing sellers from various industries and serving as a significant platform for product sales. Suddenly, the dynamics of the market shifted, and being present on eBay became a crucial aspect of any successful sales strategy.
Over time, however, the fortunes of eBay waned, and the focus shifted back to individual websites and search engine optimization (SEO) to drive traffic and sales. This transition aimed to leverage the power of platforms like Google, with businesses striving to dominate search engine rankings. Amidst these changes, Amazon began transforming its business model, opening its doors to third-party sellers beyond book retailers. This move marked a turning point in the e-commerce landscape, as sellers recognized the potential of Amazon's vast customer base and the inherent trust associated with the platform.
Around six to seven years ago, this shift gained momentum. Amazon's decision to introduce Fulfillment by Amazon (FBA) services, where the company would handle pick, pack, and shipping for sellers, revolutionized the game. This offering provided a convenient and cost-effective solution for sellers, enabling them to focus on their core business while leveraging Amazon's robust infrastructure. Sellers flocked to the platform, capitalizing on the trust and ease of transaction that Amazon had established among its customers. The gravitational force that once drew sellers to eBay and other channels now firmly resided within the realm of Amazon.
Recognizing the changing tides, Shaahin and his team embraced this paradigm shift. They understood that Amazon had become the preeminent channel for product sales, thanks to its extensive customer reach and FBA capabilities. They strategically placed their products on the platform, devising optimization strategies to maximize sales and visibility. Today, they offer close to 200 different SKUs on Amazon and have even established a service company that helps accelerate products to top-ranking and best-seller status.
Shaahin's journey exemplifies the transformative power of e-commerce, highlighting the shifting dynamics between traditional retail, online platforms, and the rise of Amazon as the dominant force. From brick and mortar to eBay and now Amazon, the industry continues to evolve at a rapid pace. As businesses navigate this ever-changing landscape, embracing the opportunities presented by online marketplaces and leveraging the trust and convenience they offer will be key to success in the digital age of commerce.
In conclusion, Shaahin Cheyene's entrepreneurial journey mirrors the broader transformation within the e-commerce industry. The shift from brick-and-mortar retail to online platforms, particularly the rise of Amazon, has redefined the way products are bought and sold. The advent of eBay provided early insights into the potential of online marketplaces, but it was Amazon's business model innovation and FBA services that truly revolutionized the game. As sellers gravitated toward Amazon
