Advertise with fastmoving.co.za
 
 

Almost 40% of all online spend is conducted through Amazon, according to new research from Salmon.
Almost 40% of all online spend is conducted through Amazon, according to new research from Salmon.

Amazon claims nearly 40% of eCommerce spend

INTERNATIONAL NEWS

By Caroline Baldwin - Jul 11th 2017, 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. 

Read more about: online | innovation | digital | amazon

Related News

Amazon backs renewables projects on path to 100% clean power
29/10/2019 - 09:03
Amazon.com will invest in three new wind and solar projects as it moves toward a goal of meeting 80% of its energy needs from renewable sources by 2024 and 100% by 2030.

Christmas is coming: 3 ways retailers can ensure a more profitable festive season
14/10/2019 - 10:29
According to Stats SA, retail figures for December 2018, showed an annual decline of 1.4% instead of the expected 2.1% growth. It seems like brick-and-mortar stores are battling against depleting footfalls and decaying consumer confidence.

It’s time to close the media spending gap between digital and television
01/10/2019 - 14:46
Up until a few years ago, marketers worked on the assumption that digital reached a small audience of high-income earners while television served the mass market. That picture has changed dramatically over the last five years, and the time has come for brands to rethink how and where they allocate their media budgets.

The Co-op takes convenience retailing digital
26/09/2019 - 10:15
The Co-op has launched a new smartphone app which it claims is the future of convenience retailing as it gives its members digital access to offers and services for the first time.

Flipkart and Amazon pull listings for vaping products
22/09/2019 - 13:02
Amazon.com, Walmart-owned Flipkart and other e-commerce portals in India scrambled to remove listings of vaping products a day after the federal government imposed a nationwide ban on electronic cigarettes.