Wordpress | Post Status Draft Podcast

Ben Thompson recently wrote about Shopify and the Power of Platforms. He highlights the difference between an aggregator (e.g. Amazon’s Merchant Services) and a platform (Shopify) and makes a case for how Shopify can successfully compete against Amazon. If you’re new to Ben’s work, I highly recommend following the links he references in the opening paragraphs. Aggregators vs Platforms As Ben explains, Amazon is an aggregator that owns the users (i.e. customers, Amazon Prime subscribers) and aggregates the suppliers (i.e. merchants, manufacturers). Amazon succeeds by providing a great user experience (e.g. one click checkout, same day delivery) and by treating products and their suppliers as commodities, all available to the customer in a single, aggregated shopping experience. While aggregation can provide high value for customers, it minimizes the opportunity for merchants to differentiate and can ultimately hurt customers as competition and innovation are stifled.  A competitor to Amazon might try becoming