Amazon redirects customers to external shops — The strategy behind the new trend

Table of contents

1. initiation — What is happening on Amazon right now?
2. Amazon's new strategy — Why customers are redirected to external shops
3. What effects does this have for buyers?
4. What does this mean for sellers and brands?
5. The possible reasons behind the change
6. Opportunities and risks for the e-commerce market
7. Conclusion

1. Introduction — What is happening on Amazon right now?

Amazon has significantly expanded its e-commerce market in recent years and dominates online retail worldwide. But now a new strategy causing a stir: Customers are increasingly on external shops redirected outside the platform. This is a remarkable change, as Amazon has always strived to keep users within its own marketplace. But what is really behind it?

2. Amazon's new strategy — Why customers are redirected to external shops

Until now, Amazon was known for its marketplace strategy, in which retailers sell their products directly via Amazon. However, with the new change, Amazon is leading buyers Third-party websites continue. In particular, this happens with certain product categories and with sellers who participate in Amazon's “Buy with Prime” program.

Amazon is apparently testing with this strategy new ways to monetize, without processing all sales via your own platform. This could be an attempt to hedge against increasing competition and regulatory pressure.

3. What effects does this have for buyers?

For customers, this change results in both Benefits as well as challenges:

• advantages:
  • Wider selection of products and better prices outside of Amazon
  • Direct orders from retailers, often with Discounts or exclusive offers
  • More transparency regarding shipping options and delivery times
• Disadvantages:
  • Different Checkout processes, which vary depending on the shop
  • Less protection from Amazons Buyer Protection Policy
  • Possible Privacy concerns, as information is shared directly with third parties

4. What does this mean for sellers and brands?

The new Amazon strategy presents retailers with various opportunities and challenges:

✅ Opportunities:

• Brands can do more Traffic Direct them to their own online shops
• More control over Pricing, Customer Communications, and Branding
• Potentially higher margins, as there are no Amazon fees

❌ Risks:

• Dependence on Amazon's algorithm: Who really benefits from redirects?
• Lower visibility on Amazon if Amazon prefers its own products
• Customers could be confused by the switch and Bounce rates could rise

5. The possible reasons behind the change

Amazon is pursuing several goals with the new strategy:

1. Cost reduction: By reducing processing costs, Amazon can improve its margins.
2. Regulatory pressure: Authorities around the world are watching Amazon's market power critically. Opening up the marketplace could help Amazon to avoid competitive lawsuits.
3. Competition with Shopify & Co.: Direct sales take place through platforms such as Shopify, WooCommerce and own merchant sites too. Amazon wants to retain retailers more closely through the “Buy with Prime” program.

6. Opportunities and risks for the e-commerce market

The new development could long-term effects on all online retail. While some brands can expand their independence from Amazon, smaller retailers could struggle to keep pace with change. It will be particularly interesting how the buying behavior of customers develops — do they remain loyal to Amazon or use it more often alternative e-commerce platforms?

7. Conclusion

Amazon is changing — and so is the entire online trade. The redirection to external shops shows that e-commerce is moving in a new direction. Retailers must adapt, customers must adapt and competitors must react.

Whether this approach will prove successful for Amazon in the long term remains to be seen. But one thing is certain: The battle for supremacy in online retail will be tougher than ever before. Retailers should closely monitor this development and react strategically so as not to fall behind.

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