Amazon has managed to shake the retail market to its core. While you might think that’s utter rubbish, figures speak a different language. Amazon claimed they have nearly 80 million Amazon Prime members in the US. That’s equal to 64% of American households. Amazon also gets 43% of online sales in the US with Amazon sales giving 80% of online sales growth alone.
Back in the days, the basic strategy of the retail market was to influence as many customers as possible and make them visit the stores. Amazon has turned this picture upside-down.
The following ways will further explain to you how Amazon has caused mayhem in the retail market.
1. Two-day shipping for Amazon prime members
In the past, you had to drive to a second store if you didn’t find an item in the first store. You had to keep going from store to store until you found the item. Amazon has changed this picture completely. They have warehouses, trucks and planes to form a robust network of supply-chain and make sure their customers get their orders within two days.
2. Inventory management
When you compare retail stores with Amazon, the latter offers more variety at different prices. Amazon has managed to break retail’s location-based selection while they deliver competitive prices, further inflating the marketplace. Since Amazon is working with dozens of third-parties for services, it has overcome the retailer’s biggest problem- gathering of unsold inventory. It further shortens shipping time as Amazon has an efficient distribution network.
3. Amazon’s sear What to takeaway?
4. ch engine
55% of American shoppers have claimed their product search starts on Amazon. Unlike retail owners, Amazon doesn’t have to worry about organic search and SEO to drive up sales. With a highly advance search engine, it is encouraging its sellers on how to boost product sales on Amazon.
5. Market personalization and data management
Amazon has the upper hand with its extensive product options and evaluation. It offers comparison shopping, suggestions, ratings and sales data. With consumers becoming aware and making an educated decision before a purchase, Amazon has effectively exploited this idea. For sellers, Amazon means a way to spread their product reach beyond their local county. It is an easy job how to launch a new product on Amazon.
6. Customer experience
With one-click checkout and in-depth product description, Amazon is giving the consumer the power to make sound decisions. Using buyers and seller information through product information, Q&A, ratings and reviews, images; Amazon is providing as much product information as they can. Such is the effect of this movement that consumers now expect retailers to offer the same amount of product information and service.
What to takeaway?
The way ahead seems to have only two paths: Either become an Amazon seller or deliver a customer experience that is at par with Amazon’s. This can be both on retailer’s online and offline store.