The eCommerceer Podcast - Episode 6: Bitcoin & Amazon
Amazon to accept Bitcoin? There’s more chance of Jeff Bezos landing on the moon…
When they revealed (albeit falsely) that Amazon, the world’s biggest online marketplace, would start to accept Bitcoin by the end of the year, the unnamed insider sent Amazon sellers, independent eCommerceers, the markets and the rumours mills around the world into overdrive on 26th July 2021.
The story, published in London’s City AM newspaper, grabbed the attention of markets everywhere, driving up the cryptocurrency share price by as much as 14.5 percent in just hours.
Intrigue sparked by a recruitment advert
Seemingly the intrigue was initially sparked by a simple recruitment advert.
On 22nd July Amazon posted a job for a
“Digital currency and blockchain product lead”.
Before everybody got too excited, the share price gains slipped backwards to (last trade) six percent higher at $37,684.04, and by the next day Amazon had squashed the rumour altogether.
Amazon crushed the rumours
A Spokesperson for Amazon said,
"Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true. We remain focused on exploring what this could look like for customers shopping on Amazon."
What does this mean for the eCommerceer?
Like everybody else, I’m drawn to the word ‘could’.
“Could” doesn’t mean that Amazon would start accepting cryptocurrency. It also doesn’t mean that they wouldn’t.
What it does mean for the eCommerceer, however, is that after a year of huge progression, the eCommerce profession is going to continue to progress. The changes upgrades and innovations won’t stop.
The uplift in online retail brought about by the pandemic, and the digital enablement of a population of buyers are not simply here to stay, they will continue to develop at pace. eCommerceers everywhere must be prepared for the continuing evolution.
If manufacturers are starting to accept bitcoin payments and customers show an appetite to use cryptocurrency, the ‘wider acceptance’ that investors seek may not be far away.
Global Head of eCommerce – Grant Fraser Commented.
A lot of people have noticed that Jeff Bezos has been working out over the past 12 to 18 months. I think this is a good example of him flexing his cryptocurrency muscles after having flexed his marketplace muscles over the past twenty years.
I don’t think that you can look past the fact that the mention of Amazon’s name in association with a product sends those products share price upwards rapidly.
I think that the potential for cryptocurrencies to be accepted as a valid form of payment on the Amazon marketplace suggests that further change in this space is inevitable.
While I'm not sure I would advocate speculating on the price of Bitcoin or Ethereum because of this week’s story, I’d certainly be keeping an eye on how Bitcoin continues to perform.
For the eCommerceer the take-away is that obviously change happens, and the entrepreneur needs to have their finger on the pulse. It’s vital to gain that first movers’ advantage considering any change that might impact their business.
Whether that is changes to market trends, changes in the weather, changes in our potential post-pandemic landscape, or long-term changes in their supply chain or brought about by the upcoming summit on climate change, the eCommerceer must be ready to adapt and react and then flex their own financial muscle to take advantage and stock the hot products that are selling fast.
The entrepreneurial journey simply doesn't stop. The eCommerceer’s success is based on their ability to be adaptable, to be flexible, to keep growing, to keep capturing market share and to keep developing or sourcing new products, and cash is the means to do that.
Don't forget to subscribe and keep an eye out for our next episode, coming soon.
Also available on Spotify and Apple Podcasts:
Don't forget to subscribe and keep an eye out for our next episode, coming soon.
We will be talking to TradeBridge's CEO and Co-Founder about whether the rise of eCommerce has finally ended the reign of high-street shopping?
If you have any questions or would like to get in touch, contact us at grant@tradebridge.com or visit tradebridge.com/ecommerce