How Retailers Can Avoid Falling Into Amazon Firefly’s Flytrap

In case you missed it, Amazon recently introduced a new smartphone called Fire, which includes a shopping feature called "Firefly".  "The Firefly shopping feature, if successful, will have serious consequences on the ways that both online and brick and mortar retailers do business," says Upstream Commerce CEO, Amos Peleg.  "As a result," Peleg says,  "Relationships between brands and manufacturers will need to tighten, pricing correctly will require a solid real-time view of the market, and using the right solution will be key."  Here are some of the things Peleg says retailers must do to avoid falling into the Firefly flytrap:  


NEWS RELEASE July 23, 2014  

For Immediate Release

"Yes, Retailers Can Do Something About Amazon Firefly" Says Upstream Commerce CEO 

UC logo 200 x 190New York, NY -- "The new Amazon smartphone called Fire, with its shopping feature called Firefly has the potential to set retail on its ear," says retail intelligence executive Amos Peleg. With Firefly, Peleg explains, all a customer has to do is walk into a store, take a picture or plug in the merchandise details, and Amazon responds instantly with the product and order form so the customer will order it immediately and end their product search.

"Amazon is serious and consistent about disrupting brick-and-mortar offline retail by encouraging showrooming every way they can, while, at the same time, they are putting tremendous pressure on online large retailers such as Walmart, Target and others," says Peleg.



"The good news," says the Upstream Commerce CEO and co-founder, "is that retailers can meet this latest challenge by taking the following initiatives":


1. Differentiate. Differentiate. Differentiate.

2. Continue to further blur the lines between store and Web by tightening the connections between the channels. “Webrooming” and store pickup is something Amazon cannot offer.

3.  Avoid competing on the same products as much as possible.

4.  Have a clear pricing strategy.

5.  Optimize pricing based on that strategy.

To differentiate, says Peleg, retailers need to:

* Push even more on creating and growing their private brands.

* Recognize that brand manufacturers are needed as strong partners more than ever, as just pressuring brand manufacturers for getting lower prices is not a win-win strategy.

* Make a joint effort to plan product assortment for minimal direct competition.      

Peleg says: "We're going to see all these efforts accelerate -- and take an even more important place in the way retailers and brands are operating. The right tools for enabling that type of brand manufacturer-retailer relationship and for building their own brands will be key for retail success."

Upstream Commerce has provided a download at its Knowledge Center with more details of how retailers can meet these competitive threats.  

About Upstream Commerce

Upstream Commerce transforms how retailers around the world grow sales and boost margins through real-time competitive insights, smarter pricing, and optimal product selection. By delivering automated, real-time intelligence and analytics, Upstream Commerce helps companies across more than 15 retailing categories manage their relationship with their brand manufacturers, and optimize pricing, merchandising, promotion and lifecycle management.

Upstream Commerce's cloud-based solutions are purpose-built to simplify and streamline – on a massive scale – the complex data gathering, matching, and processing required for actionable retail intelligence. The Company's advanced analytics enable dynamic pricing, provide rich insights throughout the lifecycle of every product and category, and allow retailers to build and test business scenarios. For a more detailed version of what retailers must do to meet the competition and learn how Upstream Commerce delivers results for some of the largest and most innovative retailers in the world such as Staples, Toys-R-Us, Petco, and e-Bags, go to or call (800) 815-1842.


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Naomi K. Shapiro, Strategic Market Communications

About Author

Seasoned strategic market communicator, Naomi headed public information for several academic and professional associations as well as founding Creative Brilliance Associates Market Communications. She created and published Brilliant Ideas for Publishers Magazine and authored popular newspaper trade reference, The Brilliant Book of Promotions, Sales Tools & Special Events. Simultaneously, Naomi savored the world as an adventure travel writer that included trekking on glaciers, fishing with saltwater crocodiles and swimming with piranhas. Naomi holds her M.A. from the University of Wisconsin, including participation in a unique industry-science-technical writing program.
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