Currently, in the markets that Amazon has already built its presence, it could be hard for any new entrant to compete with this giant. As suggested above, there could be indeed a great number of monetary and non-monetary effort needed for building the systems, which is important to support warehousing, distribution, marketing, user-friendly website, customer service, logistics. While it is easy for a new entrant to become a market player, the great inputs could be a first challenge for it. Even it has enough strong financial strength to fight with Amazon, how could it persuade buyers and sellers to come to its website to have a try? This is about the lack of ability to persuade both parties to have experience on the new platform, for both parties, having such experience could make them waste time and effort, after all, at the very beginning, there could be quite a small number of buyers and sellers making attempts on the new entrant’s platform, and thus it is not easy for sellers to get access to enough number of buyers to survive, and it is also hard for buyers to find the products that they would like to seek for. It is indeed difficult to win trust from both parties especially when there is indeed a large giant that offers generally satisfying service for both parties for many years. In such case, even the new entrant could maintain its operation for years with financial inputs continuously made, it will not be able to attract a large number of buyers and sellers as reliable clients. The threat brought by the new entrant could be weak.
