E-commerce Strategy: Where to Play & How to Win


The marketplace(s) that you select to launch on should be determined by the category or product, and the region/country that you are planning to sell in. Each channel is unique, and each channel requires different operational considerations and strategies — you may not have the organizational bandwidth to launch on multiple platforms. Amazon is the behemoth in the e-commerce space, with over 49% share of the online sales – more than the next nine e-commerce sites combined! Over 92% of US online shoppers shop on Amazon, and there are now over 95MM Amazon Prime members. In fact, 55% of online shoppers start their search Amazon, doing price comparisons and reading reviews, even if they ultimately shop elsewhere. Given this high usage rate, any brandconsidering e-commerce should give serious consideration to leveraging Amazon. However, Amazon fees, promotion schedule and fulfillment requirements are complex.  Success on this channel requires specific expertise.


Below are some questions to ask:

– Do you have production/sourcing capacity to deliver large purchase orders?

– If you sell to other distributors or retailers, do you have a MAP (Minimum Advertised Price) policy in place so they cannot undercut your pricing?

– Do you know how many unauthorized sellers are already selling your product?

– Do you have a way to monitor, govern, and enforce authorized sellers in the future?

– Do you have a sufficient budget dedicated to marketing, to drive new customer acquisition, sales growth, brand awareness, and improved search ranking?

– Do you know the internal resources required to pick, pack and ship orders? Have you explored other fulfillment options?

– Have you factored in warehousing fees (which rise during the busy months of October through January)?

– Do you have a system to accurately forecast your inventory needs?

While this may feel like a lot to consider, having answers to these questions before you tackle more executional elements (such as pricing, pack sizes, category placement, etc.) will put you in a better position to win in the long-term. HINGE COMMERCE can help!  We offer a complete suite of services to help you strategize and execute to WIN in the digital commerce space.

Reach out to our consulting team at contact@hingecommerce.com – we can help you uncover a winning strategy!

HINGE COMMERCE’s purpose is to connect companies to customers, accelerating our clients’ worldwide digital commerce.  We operate as an extension of our clients’ teams, providing world-class creative design, channel management, logistics, data analytics, and technology solutions.

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