Amazon claims nearly 40% of eCommerce spend
By Caroline Baldwin - Jul 11th, 11:18
Digital juggernaut Amazon is undoubtedly changing the way consumers behave and shop online and this is leading to 37% of all online spend going through the marketplace.
New research from Salmon suggested this spend is set to rise, with 73% of consumers saying they will increase their use of digital shopping channels in the future, while 53% say they are more likely to buy through Amazon Prime than a retailer’s eCommerce store.
Amazon’s fulfillment is setting the standard expected by consumers shopping online, as 60% of the 6,000 consumers surveyed from the UK, US, Belgium and Netherlands believe all online retailers should offer same-day delivery.
“Retailers need to consider a balanced strategy on how they compete or collaborate with Amazon. Amazon has seized the day. Put simply, they fulfil their customers’ expectations better than most other retailers in the market,” said Hugh Fletcher, global head of consultancy and innovation at Salmon.
“As consumers increasingly look to service, speed and convenience – rather than brand – Amazon sets the standard that others must follow or risk being locked out. The whole Prime premise is built around providing a same-day or next-day delivery,” he added. “Amazon has even created its own market peaks with its Amazon Prime Day. We call this “proactive peak formation”. "Its purpose is to encourage Prime membership and keep customers ordering exclusively through Amazon and away from other brands. With companies like Tesco launching their own one-hour delivery service, we’re seeing other retailers looking to halt Amazon’s dominance.”
The research is revealed as Amazon launches its Amazon Prime Day, with deals set to attract millions of consumers this week, as well as money off its own range of Amazon Echo products.
Salmon’s research stated 42% of consumers want to shop with Amazon Echo, and are either currently using or planning to use an Amazon Dash button in their home over the next year.
In addition, 60% of consumers said if a retailer was more digitally innovative, they would be likely to spend more.
Fletcher continued: “Amazon is seemingly always ten steps ahead of other retailers, and its continued expansion into other markets demonstrates its intent to sew up every industry in sight. Retailers must ask themselves, are they happy to give up their interface, their data, their customer, and their future, and become just another brand consigned to history? Or will retailers revolutionise their own offerings to combat the likes of Amazon and secure their futures?”Reed Exhibitions Limited 2017.
Walmart online growth leaps 50%, lifts annual profit guidance
17/11/2017 - 13:42
Walmart is on a roll as it continues to reap the benefits of its e-Commerce push, seeing 50% online sales growth in Q3. The total remains well ahead of Walmart’s 40% e-Commerce growth projections for 2018.
South Africans going increasingly global for Black Friday deals
16/11/2017 - 11:51
South Africans are increasingly shopping for global Black Friday deals in the US, UK, China, Australia and Europe by subscribing to international shipping services.
Amazon’s cashierless store is almost ready for prime time
16/11/2017 - 11:25
For the past year, Amazon employees have been test driving Amazon Go, an experimental convenience store in downtown Seattle.
Target's holiday-quarter profit forecast disappoints, shares dip
15/11/2017 - 15:31
Target Corp (TGT.N) issued a disappointing profit forecast for the key holiday quarter as it continues to depend on price cuts to drive traffic to its stores and online, sending its shares down 4 percent in premarket trading.
Wal-Mart partners with Lord & Taylor
14/11/2017 - 14:28
Wal-Mart Stores Inc (WMT.N) said on Monday it will offer Hudson’s Bay Co- (HBC.TO) owned department store chain Lord & Taylor dedicated space on its website, as it looks to make deeper inroads into the fast-growing online fashion business.