Looking for information? Google it, everyone says. Looking to buy something? Have a look on Amazon. Surfing and shopping from your sofa are today’s reality; the library and the High Street are for days out.
And it’s official: global e-commerce consultancy Salmon reports that 37% of online spend is done via Amazon. Furthermore, as Amazon Prime Day begins at 6pm this evening (BST) and continues all day tomorrow – a Black Friday-esque sales blitz launched in 2015 as a birthday bonanza – Salmon adds that this online spend is set to rise, with 73% of consumers declaring that they will increase their use of digital shopping channels in the future.
International research just published from Salmon shows that consumers believe Amazon is king of the digital retail jungle and is blazing a trail that others will have to follow to survive: 53% of all people surveyed said they are more likely to buy from Prime than via a retailer’s website.
This highlights the increasing adoption of Amazon Prime Day in retail and the risk to brands and their direct-to-consumer online business strategies. Basically, customers want their goods now, and Amazon can provide that speedy service: 60% of consumers surveyed said they feel same-day delivery should be offered by all online retailers.
Consumers believe Amazon is the most digitally powerful brand out there, ranking higher than its nearest competitor. The vast majority (72%) of US consumers said Amazon is leading in digital retail and the UK and Belgium also rank it as the market leader in e-commerce (57%).
Its innovative products could also play a part in that fact: more than four in ten (42%) said they would love to shop with Amazon Echo and are currently using or planning to use Amazon Dash imminently. This emphasises the need for retailers to invest in technology to harness this demand, too. Sixty per cent also said that if a retailer was more digitally innovative, they would be likely to spend more.
The American company seems to be more popular with men, as 43% of male consumers do all their online shopping with the retail company, compared with 32% of women in the US, UK, Belgium and Netherlands.
Hugh Fletcher (left), global head of Consultancy and Innovation at Salmon, said: “Amazon has seized the day!
“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.”
He said the Amazon Prime strategy provides a same-day or next-day delivery; the immediacy that consumers now require. 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.”
He added: “While many retailers are still struggling with establishing omni-channel strategies, Amazon is taking omni-channel innovations to the next level, through its partnerships, delivery options and multiple interfaces – which is what retailers must do if they’re to survive.
“Salmon’s findings unveil the harsh reality for retailers that need to Amazon Prime Day and create strong digital services, both quickly and to a high standard.
“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?”
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Trained as a journalist from the age of 18 and enjoying a long career in regional newspaper reporting and editing, Sally Hooton joined DMI (Direct Marketing International) magazine as editor in 2001. DMI then morphed into The GMA, taking her with it!
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