Doug Stephens, a retail expert and founder of Retail Prophet, predicts the online retail giant will fail in the next decade and explains why.
Grow your business, Not your inbox
Stay up to date and subscribe to our daily newsletter now!
December 14, 2020 4 min read
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
Right now, Jeff Bezos is the richest man in the world thanks to Amazon, its leading online sales company. However, retail expert Doug Stephens predicts the giant could fall and even go bankrupt in the next decade.
On his company’s Business of Fashion page, the founder and consultant of Retail Prophet predicts the “end of Amazon” for some of the world’s most respected brands.
“I think Amazon is going to decline in ten years and these are just some of the reasons,” wrote Stephens.
Amazon is following in Walmart’s footsteps
One of the reasons the online trading platform might go bankrupt would be because it follows the same patterns as other companies. Stephens gives Walmart an example.
“Between 1962 and the early 2000s, Walmart led the retail business, beating dozens of small and large competitors. By 2010 Walmart had opened an incredible 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 corporations can fall,” said Stephens.
“Amazon uses a lot of technology, but the real magic is people.”
The #teamthatdelivers delivers for you this holiday season (and has fun doing it). Find out more here: https://t.co/xwEDbqaRRp pic.twitter.com/s3YBmEQSEO
– Amazon (@amazon) December 3, 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; They want a lot of choices, “said the tycoon in statements from Business of Fashion.
However, Stephens believes that people don’t just buy because they want the products as soon as possible. They also want the full shopping experience: leave the house, touch the products, compare them, try new things or be inspired. In this sense, Amazon’s disadvantage is limited to online purchases.
The focus on customer service is lost
If a company has a powerful leader like Jeff Bezos at its head, it would hardly function 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 original mission, customer satisfaction, to prioritize 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 is being used up just working to keep the organizational infrastructure in place,” noted Stephens.
See Also: See Why Jeff Bezos Will Grow His Net Worth With The Arrival Of Airbnb On Wall Street
Dough Stephens cites other reasons for the possible demise of Amazon, such as the allegedly toxic work environment and the migration of current partners to other, friendlier delivery platforms.
The combination of these factors could cause Amazon to suffer losses over the next decade and be replaced by another similar company that offers better terms for partners, employees and customers.