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Published
Jul 12, 2017
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Almost 40% of online spend goes through Amazon, research finds

Published
Jul 12, 2017

Amazon’s global scope and reach has been finally revealed with international research finding that 37% of online spend is done through the e-tail giant. And this figure is expected to rise, as 73% of consumers plan to increase how much they shop online in the future.


Reuters


Amazon is considered the most digitally powerful brand out there by consumers in the US and Europe, says global e-commerce consultancy Salmon, which carried out a research to explore the international platform’s dominance.

Salmon looked at survey data collected by Censuswide from more than 6,000 consumers aged between 18 and 64 from the UK, the US, the Netherlands and Belgium.

It found that 72% of US consumers think Amazon is “leading the way in digital retail”, while 57% of shoppers in the UK and Belgium rank the site as a market leader.

The American company’s way of doing e-commerce has resonated with consumers all over the world, with over half of them (53%) saying they are more likely to buy from Amazon Prime than a retailer’s online store.

The e-commerce giant has also impacted the wider industry, and now 60% of consumers believe all online retailers should offer same 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. 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,” says Hugh Fletcher, global head of consultancy and innovation at Salmon.

Fletcher highlighted Amazon’s drive for innovation with the launch of Amazon Prime Day, which encourages members to keep ordering exclusively through Amazon and away from other brands.

Other companies, like Tesco, are launching their own one-hour delivery service to halt Amazon’s dominance, but retailers need to offer more omnichannel services if they are to survive, said Fletcher.

“These findings unveil the harsh reality for retailers that need to wise up to the threat of Amazon 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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