25 July 2018 0 Comments Posted By : Administrator

What Does Amazon Need to do to Topple Traditional Retail? 6 Points to Consider

Amazon has been heralded for years as the perennial sort of “retail killer,” poised to top brick-and-mortar stores given its status as the king of online shopping.

However, recent data shows that this often heralded future where Amazon reigns supreme may be further off than we thought.

In fact, retail recently stocks reached a 52-week high in the case of big box brands like Costco, Ross and Five Below.

This seems backward given the fact that there seems to be an Amazon package on every doorstep and deals via Prime Day have managed to dominate the retail news cycle, right?

While Amazon’s popularity is impossible to deny, it appears that the company still has a way to go in terms of the retail “takeover” that seems to constantly be around the corner. Considering that Amazon if effectively competing with any and all retailers on the market given its wealth of products, perhaps this slowdown shouldn’t come as much of a surprise.

But the question remains: what does Amazon need to do to achieve the status it seems to so desperately seek?

Based on the popularity of Amazon online shopping and observations in the retail space, we’ve outlined the six elements that may ultimately result in the company’s long-term dominance over brick and mortar stores.

Become the Local “Good Guy”

Arguably the biggest element working against Amazon is, ironically, its size and scope. People have always touted their commitments to local business, especially post-recession where money isn’t so tight and a price tag isn’t the sole decider when it comes to customer loyalty.

Amazon’s status as a giant means a massive customer base, but what about that sense of pride?

While few people are treating Amazon like a mom and pop shop, benefits such as Prime, access to exclusive Amazon content via Prime and other services (Prime Pantry) are making the service feel like more than just a corporation. In short, people can certainly overlook Amazon’s size as long as their services make their lives easier.

Continue Its Speedy Service

And of course, free two-day shipping at a low price is difficult for local retailers and ecommerce stores alike to compete with. The fact that buyers can now pick up directly from local shipping centers and Amazon lockers same-day is a game-changer for today’s increasingly impatient shoppers. The strides Amazon has taken to emphasize speed speak for itself.

Keep Its Prime Day Momentum Going

With over $4 billion spent on Prime Day despite site-breaking traffic, flash sales haven proven to be a huge success for the brand.

Flash sales and holidays represent Amazon’s bread and butter, especially given the popularity of online deals and shoppers’ tendencies to wait until the last minute. These flash sales also speak to the needs of those who don’t want to brave traffic or crowds.

The more Amazon gets into a rhythm of such deals, the better it is for encouraging long-term buzz.

Empower Smaller Merchants

One of the most overlooked aspects of how Amazon is beating brick-and-mortar stores is the fact that they’re actually partnering with smaller, local retailers both online and off. Just about anyone can sell their products on Amazon now, which makes perfect sense as conventional wisdom tells us that approximately half of all sales-related queries online start there.

Allowing smaller merchants a place on the platform is another point in their favor, not only for covering more ground but also being seen as the aforementioned “good guy.” Absorbing the competition is a win-win and puts more pressure on big box stores to offer experiences to customers.

Find More Positive PR

Headlines about Jeff Bezos, shipping practices and working conditions may not mean much to the average shopper, but bear in mind that any positive PR helps in a day and age dominated by transparency. Piggybacking on the theme of being the “good guy,” it’ll be fascinating to see how Amazon manages any sort of public snafus as it continues to grow.

Maintain a Local Presence

Last but not least, consider that some shoppers simply cannot move past the idea of not shopping at a brick and mortar store. Shipping centers and lockers are a good start, signaling that the company may take further steps to maintain a local presence.

And although one may think that Amazon shouldn’t concern itself with offline shoppers, remember that traditional still dwarfs local commerce in terms of sales.

Amazon is well known for taking risks and rapidly rolling out new benefits for its customers, so who knows what’s around the corner in terms of their positioning strategy. That said, it seems as if their takeover of the space is inevitable: whether it comes in the next few years or takes a decade or two ultimately remains to be seen.

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