With Amazon Prime Day on July 11, there will be deals on products across the site set to attract millions of consumers, it was today revealed that Amazon is responsible for nearly 40% of all global ecommerce sales.
New research from Salmon, the leading ecommerce platform and multichannel solution provider has revealed that 37% of all online spend goes through the digital giant’s online marketplace. And this is set to rise even further Salmon suggest, with nearly three quarters of consumers saying that they expect their use of digital shopping channels to increase in the future. 53% say that they are far more likely to buy through Amazon Prime rather than a retailer’s online store.
As well as Amazon being seen as a ‘safe’ way to shop online, it is clear that their fulfilment is a big draw and is leading the way in online retail. Offering more and more same-day delivery, they are setting the standard for online retail and consumers like this with 60% of those surveyed saying that they think all online retailers should offer one-day delivery.
“Retailers need to consider a balanced strategy on how they compete or collaborate with Amazon. Amazon has seized the day. Put simply, they fulfil their customers’ expectations better than most other retailers in the market,” said Hugh Fletcher, global head of consultancy and innovation at Salmon.
“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. The whole Prime premise is built around providing a same-day or next-day delivery,” 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.”
Amazon doesn’t look set to stop there however. Just as they are dominating the online retail space and are expected to do so even more, they are setting their sights on more traditional retail too. We reported recently that Amazon have taken over Whole Foods which will see them take on their 461 stores across Canada, the US and the UK in a deal that is said to be worth $13.7 billion.
There are also rumours that thanks to somewhat disappointing results for the UK online Ocado there could be a future takeover bid by Amazon, keen to get its hands on Ocado’s 7.6% of market share of online grocery sales. This is all just hearsay at the moment but many industry commentators are saying that there are some strong signals that we could see such a takeover in the next few months.