A former Google employee started Anchor, a charger company in China, with the goal of earning good ratings on Amazon, eventually growing Anchor into a billion-dollar brand. While creating a brand beyond Amazon is important, it's still possible to build a successful business on the platform.
The conventional wisdom is that Amazon FBA businesses are not durable or defensible due to the ease of competition and lack of a moat, with Amazon itself entering different categories and introducing Amazon basic brands. While it may work for some time, relying on the algorithm and fake reviews can ultimately lead to the brand dropping to zero or plummeting.
Many news websites are forced to build their own paywalls from scratch due to issues with current available providers, with some sites paying upwards of six figures on software fees.
Early stage tech companies often start with performance marketing in order to build awareness, and giving away cars is a common tactic. Performance marketing helps to automate tasks, track customer data, and reach goals without relying on immediate sales.
Qualcomm's mobile strategy is focused on making Snapdragon the go-to for premium Android experiences, rather than trying to outcompete companies like Google and Apple in the chip-making space.
As we rely more on monopolistic companies with high market shares, we risk limiting innovation and competition, eventually leading to consumers questioning why they're paying for certain digital services.