ormation rivalling Google.

What may be more impressive is how it found success in the US and Canada. Lisa Wright (2018) explains that Amazon’s “secret sauce” to success is simply its obsession with the customer experience (Wright, 2018, 1). Customer Obsession is one of fourteen leadership principles listed on Amazon’s website. This principle requires leaders to “start with the customer and work backwards” to “earn and keep customer trust” (Amazon, n.d.). Wright (2018) explains that Amazon uses this perspective to create great experiences for their customers (p 4). Making use of insights is key to this approach and so is optimizing their operations for added convenience (Wright, 2018). These customer centric lessons are essential for SMEs seeking to modernize their operations. If not, these SMEs are at risk of being displaced by a larger e-commerce merchant in-tune with consumer needs.

This displacement of SMEs by Amazon is a real threat that should not be taken lightly. This threat has been coined as the “Amazon Effect,” and it refers to Amazon’s impact on the retail landscape (D’Agostino, 2018, 2). Amazon’s success has often come at the expense of competitors both online and offline. D’Agostino (2018) highlights how Amazon’s business model and operational efficiency has led to the disruption of markets and contributed to the downfall of retailers across the retail industry in the US. This effect can be observed in foreign markets as well. Research by Yang (2018) highlights how Amazon’s operations has enabled them to overcome barriers in the Australian market disrupting the electronics market.

eMarketer (2017) explains in their annual report on e-commerce in Canada that the digital disruption of retail is well underway. The report by eMarketer (2017) suggests that retailers are already feeling the pressures of the amazon effect. It cites the rise of hybrid fulfillment models (such as buying online and collecting in-store) and increased investment in the web experiences of digital properties as evidence of the digital disruption spurred by Amazon (eMarketer, 2017). These initiatives by larger retailers should give pause to SMEs that choose not to adapt their operations. No one is immune to digital disruption, a point made by numerous pundits citing the closures of Blockbuster, Sears and Toys ‘R’ Us as reminders of that lesson.

It is important to remember that behind the well oiled operations of Amazon globally is a commitment to the customer. This commitment has endeared them to Canadians making them the most