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[Brunch Study] Amazon Innovation

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Go Gun)

Brand consulting (culture over price) VS shopping-mall consulting (discount coupons)

In the end, revenue is the result 

My essence problem? Brand vs. distribution 

 

 

Obsession with and consistency toward the customer <- the importance of company value 

Coupang's value? (they copy, though..) vs. Amazon's value 

 

Commerce players, within their constraints and range, must figure out 

how to produce results from execution. 

 

Customer obsession, customer-first — technology follows 

Since we're not in the user's shoes, there's a gap in empathy 

Comparison insights: own-site mall vs. third-party marketplaces 

 

Structure 

Not a business that sells products and keeps the margin 

A platform where commerce happens 

Strengthening existing infrastructure (seller convenience) <- cross-revenue support model (Coupang doesn't have this)

B2B service platform 

 

Membership isn't about giving rewards proportional to usage 

The core of convenience stores is logistics. 3 deliveries a day (because storage is small) 

Apply Amazon's framework and you could expect 2-day shipping to shrink to 30 minutes 

 

Prime — a solid subscription model 

A fight to own the consumer's time 

 

Seller convenience, a feel of "the gateway to the world" 

Offline stores — peak — "they died" — a chance for a comeback.. (but not for just anyone) 

Facebook — pivoting: social -> advertising -> shopping platform

 

 

 

#Agenda — commerce of interest 

 

Marketing — 30-min delivery 

Delivery, HMR — an era when buying is cheaper: not only ready-made meals but convenience stores too? -> four-wheelers are hard, you need two-wheelers (fleet) — acquire? partner?

Delivery — right below CJ is Coupang 

 

Instagram commerce — cell markets, regular users can be sellers

Subscription — home-delivered services — home training.. cleaning

WACD — proximity-based o2o synergy..

 

Super net — not done from home (seafood is a no-go),  

Making idle space efficient — except for a certain space, useless <- perfectly single-person only (cooking, travel)

 

Relationships with customers (B2C, B2B..)

Customer relationship starts after the sale 

 

They seem to use content to differentiate commerce.

 

 

#Agenda — retail's hard time 

*my commerce? community; retail's struggle? big-retail struggles, small-retail flourishes — total volume conservation; consumers..long-term harm

Aren't reviews also a community? 

 

Searching even on-site. Why buy at a department store? 

 

Marts — don't go often — too big. Search-failure rate, even with a family of four, no time to consume 

 

Pangyo Hyundai Dept. Store — only the grocery floor is crowded 

 

**Self-needs are clear; educational environment  

 

Sweet spot 

 

 

 

#If Amazon enters 

- wouldn't online marketplaces just compete among themselves?

- what if it gets localized? = Netflix (terrestrial broadcasters defend… the result?) // Netflix — re-exporting Korean content 

Customer-centered, sellers are also customers? — price competition intensifies to win the Buy Box 

FBA — seller admin interface is different. Daily fees, inventory-management ratios

- Amazon even handles inventory in/out and packaging. Unlike Coupang, Amazon doesn't purchase and resell 

Traffic share itself — Amazon and Google are 20% 

- more competition with Naver than with Coupang 

- customer choices broaden 

* Korea > Alibaba-lake -> Amazon 

Maybe acquire offline players

Lotte — pulling out of AWS 

Headquarters = Singapore -> Korea, Asia outpost 

*Korean Army (ARMY) — middleman — global Army

Before a dominant player emerges, wouldn't other businesses (content) come in first? 

 

Even within PB there are levels

Frequency, involvement 

NPM, PB OEM 

Issues and speed 

 

Weather-based demand forecasting — ice cups, lunchboxes, salads 

 

Retail — big-retail / small-retail

Fashion — price — SPA. Price — personal brand..

PB — efforts to secure originality — sustainable.. 

(Distribution doesn't own the core of manufacturing… Distribution is an inventory game. Flow business, not stock)

 

DNA of thinking: not a pivot from distribution ("go fast!"), but recruiting from manufacturing (concept, branding) 

Amazon-similar, HelloNature-similar 

 

Namyang — E-mart PB products, price!, formula, goat milk 

 

 

This English version was translated by Claude.

친절한 찰쓰씨
Written by
친절한 찰쓰씨

Pleasant Charles — UI/UX researcher at AIT. Keeping notes on design, planning, and slow days here since 2010.

More on the author's page

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