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BizReport : Ecommerce : May 19, 2017


'The Amazon Effect' and what retailers can do about it

What is behind Amazon's rapid-fire growth, and what can retailers do about it? Those are questions answered in an upcoming report from Bluecore - 'The Amazon Effect'.

by Helen Leggatt

According to a report summary*, Amazon accounted for 53% of ecommerce growth last year and moves as much as six times as much ecommerce merchandise as the eight biggest brick and mortar retailers combined. In the ten years from 2006 and 2016, Amazon increased its market value by a whopping 1,934%.

Those features that Bluecore identifies as having contributed to Amazon's success are delivery, site experience, and loyalty. Consumers demand efficient and fast delivery, and Amazon's delivery times are, on average, two days faster than its competitors. More than two-thirds of consumers (69%) said one-day delivery led them to shop online more often.

Consumers also rate Amazon highly for its site experience, particularly with regards to search. Bluecore's' research found that 33% of consumers choose Amazon over other online retailers because of its site experience.

Finally, Amazon has also created a stickiness with consumers, as 55% of US consumers will begin an online product search on Amazon compared to 28% who start on a search engine and 16% who start on a retailer's site.

"There's no denying Amazon's stronghold on the eCommerce market, but retailers can compete -- it's just a matter of finding the right opening," says Bluecore. "The biggest opportunity lies in personalization, as 41% of shoppers say better personalization would make them more likely to buy from a retailer over Amazon and only 33% of consumers rate Amazon's site personalization and product recommendations as superior to other retailers."

* The full report will be made available in June, 2017. In the meantime you can register to receive a copy here.

Tags: Amazon, competition, ecommerce, retail










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  • We all know e-Commerce has a booming market. We heard about a new startup in the eCommerce industry each day. But, not all companies are sustained in the competitive world of eCommerce due to a few factors. The main factors are user experience on the desktop website and mobile, product delivery and loyalty. To get sustained, retailers need to improve their site’s performance and user experience.


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