Bluecore
How the online retail giant has
disrupted an industry
The eCommerce Explosion
The US eCommerce market is on track to reach $414 billion by 2018, up 40.8% in a mere four years
Amazon is Fuelingthe eCommerce Explosion
Amazon has fueled the eCommerce explosion, accounting for more than half of US eCommerce growth in 2016
Additionally, Amazon increased its market value by a whopping 1,934% in the 10 years from 2006 to 2016
Often, this success has come at the expense of other retailers, with Amazon moving nearly 6x as much eCommerce merchandise as the eight biggest brick-and-mortar retailers combined
Amazon for the Win: 3 Strongholds for the eCommerce Giant
Amazon led the online retail category in the 2017 Customer Loyalty Engagement Index, meeting customer expectations 94% of the time
Three key points of differentiation for Amazon include:
Delivery speed matters, with 69% of consumers rating one-day delivery as a key incentive for shopping online more
Notably, Amazon reduced its average ship time by about 1.5 days over the past two years, putting its shipping at two days faster than the average competitor
Amazon +2 Days competitor
Amazon has the second-highest rated website experience in the US, and 33% of consumers choose Amazon over other retailers because of its site experience
Search, in particular, makes a big difference, as 41% of consumers have left a retailer’s site for Amazon after a poor search experience
Amazon has also created a stickiness with consumers, as 55% of US consumers will begin an online product search on Amazon compared to 28% who start on a search engine and 16% who start on a retailer’s site
Additionally, 9 in 10 consumers comparison shop on Amazon even if they find a product they want on a retailer’s site
Can Retailers Compete?
There’s no denying Amazon’s stronghold on the eCommerce market, but retailers can compete — it’s just a matter of finding the right opening
The biggest opportunity lies in personalization, as 41% of shoppers say better personalization would make them more likely to buy from a retailer over Amazon and only 33% of consumers rate Amazon’s site personalization and product recommendations as superior to other retailers
What to do next
What does the growing force of Amazon mean for retailers? And what does it take to compete? Get the answers in the full State of Amazon report