There are three crucial elements for a merchant to sell online:
1. Pricing — Having the best price
2. Availability — Having a product that nobody has
3. Traffic — Having visitors that actually see the offer
So the formula to generate sales is:
Sale = Price + Availability + Traffic.
Pretty simple.
Amazon is extremely strong when it comes to traffic. That is the main reason merchants sell on their marketplace. The problem is: Amazon always wants the lowest prices and is using its power to force merchants to compete in a downward spiral. That, and the high commissions Amazon charges, brings merchants to their limits.
How is the GAMB marketplace going to compete with Amazon?
Again, we will go back to the three pillars of a sale to see how GAMB can improve upon the established marketplace-model.
Price:
The price issues can be solved easily: we will charge a humane and merchant-friendly commission that serves only to cover the operational cost of GAMB.
Did you know that many merchants that actually have the best market price DO NOT sell on Amazon due to the high commissions? Simply compare the TOP 100 selling products on www.amazon.de with any German price comparison site and you will see what I am talking about.
That is why our GAMB marketplace will be able to offer better prices for customers.
Availability:
By offering better conditions to merchants, GAMB will be able to have a better range of products available to the customers.
The GAMB Merchant Alliance will benefit from the sourcing power as a group. We will reach out to brands that do not collaborate with Amazon, like for example Birkenstock. Birkenstock decided not to work with Amazon because Amazon did nothing to prevent the sales counterfeits of that brand on their platform. Read more about the Amazon — Birkenstock conflict here
I could name you at least 100 additional brands that do not work with Amazon for the exact same reason!
Traffic:
By having better prices and a better product range, we will attract traffic immediately.
Plus we have the strong support of Gambio backed by GAMBIO — the #1 e-commerce software provider in Germany, generating billions in revenue. They have over 25,000 active merchants that could jumpstart the sales on GAMB once it is introduced.
And that is just the start! GAMB will share customer details with its merchants (so it will truly be their customer, not the marketplace’s) and the merchants will have ownership of the platform (via his GMB tokens and by being a member of the merchant alliance), so they will define the platform themselves.
A true partnership
The GAMB marketplace will foster a safe and productive relationship with all brands on our marketplace and we will be able to offer products Amazon cannot.
Our team has over 70 years of accumulated e-commerce experience and we have processed billions of € of transactions in the last 19 years. We know what the merchant challenges are. We know what Amazon does to merchants. We know that that dominance needs to be broken and that is exactly what we at GAMB will do!
Who we are
GAMB — The Global Alliance for Merchants on the Blockchain has made it its goal to deliver a sustainable alternative to the powers currently dominating global e-commerce. We are building the leading decentralized marketplace. By enabling merchants to actively participate in every important decision, we empower them to be more than just customers of a platform.
Author
Luis Krug, CEO of GAMB. Luis is one of Europe’s e-Commerce pioneers, having started his first company at age 25. Founder of Redcoon, an e-commerce retail project that invoiced over 500.000.000 € annual turnover, Luis knows how to start and scale e-commerce related projects.
