There is no
escaping just how big an impact Amazon Prime is having on online retail, and
especially in cementing Amazon’s position as the dominant force in eCommerce.
Amazon Prime presses all the right buttons in what online consumers want from
the digital shopping experience – competitive prices, convenience, fast
delivery, a single platform that combines product search, research and
purchasing, in one.
Prime can be
seen as an extremely successful loyalty programme, with members using Amazon
more frequently than other channels and spending more money there than anywhere
else. But it is also a driver of innovation, establishing behaviours that are
ahead of the curve in digital commerce. The Prime members we spoke to included
early adopters of voice technology and automated ordering, with the spoils of
these innovations again mainly going to Amazon.
Is Amazon Prime
a threat to the rest of the eCommerce ecosystem? It certainly sets the standard,
and has played a key role in helping Amazon grow its already considerable
market share. But rather than viewed as a threat, brands and retailers should
look to Prime to rethink and fine-tune their eCommerce proposition. Consumers
still want choice and variety, they want other channels to step up to the plate
and compete with Prime, and they even know exactly what would entice them away
from it – cheaper prices, better loyalty benefits and better delivery options.
Amazon and
Prime have set the standard. It’s a gold standard for what works
and what shoppers want. It also presents
a benchmark to the rest of the online retail industry, indicating where there
is room to catch up, match and even surpass this seemingly unstoppable tech
titan.
Wunderman Thompson Commerce has a team of eCommerce multichannel experts who are working with leading brands to address both the opportunities and challenges addressed within this article. These are explored amongst other key themes in its ground-breaking, new report “The Future Shopper”.
