October is the month where some of our readers decide to offer me feedback.
- "I just got a catalog from Amazon. It's proof that an omnichannel approach works."
- "I got my Amazon catalog in the mail. It provides that 'sitting by the fireplace feeling' that customers love. Amazon is clearly trend-right when it comes to catalogs."
- "Kevin, you are such a moron. If Amazon is mailing catalogs, then catalogs work."
One of you sent me mail/holdout results measured via proprietary credit. You showed that when you mail a catalog Amazon generates more incremental sales from the mailing than you generate. Let's see if I have the logic right here:
- Cataloger spends a million dollars mailing a catalog.
- Amazon makes more profit from the mailing than the catalog makes.
- This causes the cataloger to struggle.
- Amazon uses the knowledge to mail their own catalog.
- "Trusted partners" help Amazon (paper and packaging) while telling catalogers there is a paper shortage, hurting catalogers.
- Catalog pundits "raise a champagne glass" to praise Amazon for adopting an omnichannel strategy.
- Meanwhile, catalogers sell their products on Amazon and Amazon collects an approximate 15% +/- commission from everything catalogers sell.
Who is most strategic here?
- The Catalog Brand.
- "Trusted Partners" who support the paper industry.
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