Amazon has single-handedly - and permanently - raised the bar for convenience in online shopping. However, across the digital sector, some people are asking what the long-term negatives of convenience are. This convenience driving the Amazon flywheel hides some severe issues.
There are close to two million different brands on Amazon. Every second it gets bombarded with new brands, new (often) fake reviews, and new sellers. In all that noise, it tries to find products consumers would like.
Walmart one-day delivery is available for 130,000 products in four cities: Phoenix, Las Vegas, San Diego, and Los Angeles. Ten million products are available on Amazon one-day delivery, in a lot more cities than four.
Target reported e-commerce sales growth of 42% in the first quarter of 2019, almost all of which can be attributed to its stores - Target’s stores handled more than 80% of the first quarter e-commerce volume. What is more, same-day fulfillment services (Order Pick Up, Drive Up and Shipt) drove more than half of the company’s e-commerce sales growth and were all shipped directly from stores.
In ten years since 2009, e-commerce share of retail spending in the U.S. has grown from 3.8% to 10.2%. Last quarter it for the first time surpassed 10%.
Amazon's retail platform is built on legacy principles of the wholesale past. As it slowly readjusts to offer more data and better tools for brands, brands are innovating outside of Amazon, leaving it, together with the rest of retailers, watching from the sidelines.
Google is working to reduce the number of clicks from discovery to purchase. To compete in the world of Amazon, platforms for discovery have to bring the shopping experience in-house. Otherwise, the consumer is one tap away from opening the Amazon app.
40% of the top sellers on Amazon are based in China, up from 26% two years ago, according to Marketplace Pulse research. For Chinese retailers and manufacturers, Amazon is the most efficient direct-to-consumer platform to reach the US and European shoppers.
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