Digital commerce leaders see Amazon as a dominant competitor in retail; two-thirds (67 per cent) say they need to work with the company to remain competitive, according to a study by Wunderman Thompson Commerce. A further 72 per cent agree they need to invest more money in Amazon, simply because that’s where most products are searched for.
Despite the challenges that Amazon brings, it also offers huge possibilities – over three quarters (77 per cent) of leaders believe Amazon has been inspirational to their business with companies using its innovations to advance their own business strategy. The vast majority (81 per cent) agree that Amazon has been good for the digital commerce industry.
There are concerns however over the lasting impact of consumers becoming conditioned to Amazon and its services. Two-thirds (67 per cent) say they are concerned that consumers want to buy all of their products from one place, highlighting Amazon’s strength in creating a globally renowned marketplace. This is hardly an unlikely scenario with over six in 10 (62 per cent) shoppers excited about the prospect of buying every product from one retailer like Amazon; 74 per cent of commerce leaders admit Amazon is better prepared than their organisation for the next generation of customers.
Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce said: “Amazon is a genuine innovator that has truly disrupted online commerce. Digital commerce leaders are rightly realising this and adjusting their approach to ensure they can not only work with but compete against vast marketplaces that offer range, convenience and speed. Amazon may give a quick entry into the market, but retailers cannot afford to just rely on the Seattle giant for their online sales capability; commerce leaders need to consider a balanced commerce strategy that spans all channels.
“Through direct-to-consumer (D2C), shoppers can access personalised content and deals that keep them engaged across all channels. Having balance is a much smarter approach to the challenges in eCommerce; Amazon gives the brand access to millions of customers, while D2C touchpoints provide the opportunity to develop loyal relationships that leave shoppers wanting more. By learning from and working with Amazon, digital commerce leaders will begin to understand what they can achieve; both in their direct to consumer channels and with a vast marketplace at their disposal.”
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