EdTech Insight – Should Your Business Sell on Amazon?

by | Jun 26, 2024 | Harvard Business Review, News & Insights

Executive Summary and Main Points

The influential Harvard Business School associate professor Ayelet Israeli has cast a spotlight on the critical decision faced by businesses when considering whether to sell on Amazon. Israeli’s insights emphasize a strategic approach to leveraging Amazon’s extensive reach while taking into account the potential downsides—such as costs, heightened competition, and the significant lack of consumer data available to sellers. The dialogue around Amazon encapsulates key themes of strategy, innovation, and leadership within digital marketplaces, reflecting broader international education sectors’ challenges when integrating digital transformation into their models.

Potential Impact in the Education Sector

The decision-making frameworks and strategic considerations relevant to selling on Amazon, as discussed by Israeli, translate to actionable insights within the context of Further Education (FE) and Higher Education (HE). For FE and HE institutions, the choice to embrace digital marketplaces for course materials, partnerships for Massive Open Online Courses (MOOCs), or subscription services parallels these considerations. Similarly, in the burgeoning domain of Micro-credentials, the trade-off between platform reach and proprietary data retention holds significance for customizing and scaling educational offerings. This discourse invites educational leaders to think critically about their digital presence and partnerships.

Potential Applicability in the Education Sector

In the wake of Israeli’s analysis, education sectors can draw upon AI and digital tools to expand their reach and tailor their offerings. Institutions might leverage AI-driven platforms to better understand learner behaviors and preferences, thus enhancing and personalizing the education experience. By applying strategic frameworks akin to those used for Amazon marketplaces, educational entities can effectively navigate the complexities of global education systems, align digital strategies with institutional goals, and foster strategic partnerships to enhance their digital footprint.

Criticism and Potential Shortfalls

While Amazon’s strategies offer valuable lessons, there are criticisms and potential shortfalls that may arise when these approaches are applied to the education sector. For example, dependence on large digital platforms could lead to homogenization of educational content and diminish the control over data governance. International case studies reveal varying successes in digital adoption within education sectors, suggesting a careful contextual consideration is required. Ethical and cultural implications, such as data privacy and equitable access to technology, must be front and center in the conversation about the adoption of commercial strategies in educational contexts.

Actionable Recommendations

To navigate the digital transformation effectively, international education leadership should consider several actionable recommendations. Institutions should evaluate the benefits and risks of partnering with large digital platforms, considering long-term sustainability and academic integrity. Establishing transparent data practices, developing a clear digital strategy, and fostering collaborations can help capitalize on technology’s potential while mitigating risks. Additionally, embracing a customer (or student) focused mindset, as exemplified by Jeff Bezos, may drive innovation in designing and delivering educational experiences that are both accessible and engaging for a global audience.

Source article: https://hbr.org/podcast/2024/06/should-your-business-sell-on-amazon