With the third instalment of Prime Day kicking off yesterday evening, offering 30 hours of deals for Amazon Prime members, Amazon is at the forefront of all of our minds. A recent report by Salmon has revealed that a staggering 40 per cent of all online spend goes through Amazon. But Amazon’s domination of the ecommerce industry has done more than just overtake other online retailers. Read on to discover Amazon’s transformation of customer expectations towards online retail, and the ultimate pressure this has put on other retailers to dramatically improve their digital services.
Changing Customer Expectations
Amazon has created a model that is now cementing high customer expectations for all retailers. This impact on customer expectation is seen particularly in the success of Amazon’s delivery model – 60 per cent of people said that they feel same day delivery should be offered by all online retailers. This reveals a significant transformation in customer expectations – as Amazon has offered shorter and shorter delivery times, people have begun to expect the speed of Amazon service to be offered everywhere they shop online. Amazon is also able to maintain customer loyalty via its focus on delivery speed and ease. This is where they continue to exceed other brands, as they make it so simple to buy from them that it makes purchases from other retailers seem long-winded. Amazon’s fast and easy delivery therefore benefits their brand in more ways than one – it maintains customer loyalty, attracts new customers, and sets a standard that many other brands fall short of.
Customers Want Digital Innovation
Six in ten people would be likely to spend more with an online retailer that is digitally innovative. It is clear that Amazon’s innovative products are a big factor in its continuing appeal, and this will likely increase in the future as Amazon invest in and promote this technology. For example, 42 per cent say they would love to shop with Amazon Echo, and are currently using or planning to use Amazon Dash in the next year. Amazon’s focus on promoting these products is clear, particularly in its special offer at the beginning of the Prime Day event (Amazon voice shoppers were able to access exclusive offers 2 hours before the general public). There are also heavy discounts on voice shopper products throughout Prime Day today. Through giving benefits to current voice shoppers and encouraging others to purchase voice shopping devices, Amazon is clearly focused on meeting the increasing consumer appetite for innovative digital services and massively expanding the reach of their innovative products. The report concludes that retailers should follow Amazon’s lead and invest in new technology to harness the demand for innovation themselves.
Customers Are Embracing Screenless Shopping
“Out-innovating” for consumers means providing simpler, faster ways to purchase and receive goods. The report highlights the developing detachment of consumers to a more traditional webpage form. Amazon’s “ecosystem of devices and services” caters perfectly to this changing perception of what online shopping should be, and the rising demand for new and easier ways to shop. As long as the function works and the service is quick and easy, consumers are showing themselves to be more than open to using new technology to shop – and as the report shows us, this is actually a factor that increases the appeal of a brand massively. Amazon are one step ahead of other retailers in this area, and the challenge in the future will be for other retailers to “carve out” their own innovative products and services in order to compete.
Amazon manages to fulfil customer expectations better than most other retailers. With its speed, service and convenience, it is setting a standard that many retailers are failing to keep up with. As Amazon continue to offer faster delivery times, innovative products, and easier ways to shop, customer expectations will only rise further. This report throws into sharp focus the need for brands to revolutionise their own digital services in order to compete, and fast.