Product relevance is vital to digital marketing
Retail bankruptcies have jumped 24% year-over-year and consumers are increasingly favoring online and mobile shopping as retail brands try to ready themselves for the all-important holiday shopping season, and to compete with big name e-retailers such as Amazon. But a report from SmarterHQ shows cracks in Amazon's armor that retail brands can exploit to start stealing market share back from the e-commerce behemoth.
Much of the evolving retail landscape has been widely attributed to the enormous impact of Amazon, which has more than 310 million active shoppers worldwide and some US$136 billion in annual sales in the US alone.
But 'The Amazon Report' survey (of more than 1,200 people ages 18 to 65+) found that without free two-day shipping, 82% of Amazon Prime users said they would simply cancel their membership.
Some of the key survey findings include:
"Amazon's dominance in retail has been the primary focus of retail executives, investors, and board members - yet, the solution to steal back both market share and consumers' loyalty have evaded most traditional retail brands," said Michael Osborne, CEO of SmarterHQ. "But our report tells a surprisingly upbeat story for retail brands - consumers can be persuaded to ditch Amazon and shop in their store or on their web site. We found that people aren't going to Amazon to browse; rather, they have very specific items in mind. Free two-day shipping is very important to Amazon Prime members - so much, in fact, that they would cancel their membership if it wasn't offered. And consumers have a price threshold of $200 they're not willing to cross when shopping on Amazon, a good sign for luxury brands. While Amazon is viewed as Goliath by the industry, there are certainly weaknesses that retail brands can exploit to help drive their bottom line."
Categorised as: