Tech Bytes: Three Reasons Amazon is Everyone’s Competitor
Think quick – who are your top competitors? No matter what product category or channels you operate in, if your list of top two or three rivals doesn’t include Amazon.com, it probably needs updating.
Staples CIO Tom Conophy has publicly identified Amazon as a prime competitor, and Walmart has launched a clear strategy of trying to one-up Amazon innovations like Prime Day and delivery drones. But even if you’re not a major big-box chain, Amazon still most likely represents a critical threat to your market share. Here are three reasons why.
Not Just for e-commerce anymore
Amazon is the undisputed king of e-commerce and is recognized as having a strong mobile presence. What is less acknowledged, but no less significant to its overarching retail presence, is Amazon’s growing prevalence as a physical retailer.
Amazon recently received a lot pf publicity for its new brick-and-mortar bookstore in Seattle. The company said it will apply its vast trove of digitally collected consumer data to its physical retail activities, which could prove a game-changer in store operations.
In addition, Amazon has experimented with other brick-and-mortar offerings, like temporary pop-up kiosk stores it piloted in San Francisco in 2014, as well as pickup lockers at several colleges. Amazon is still a fledgling brick-and-mortar retail participant, but is historically a quick study and will likely make large inroads in the physical channel.
A Convenient Truth
Amazon is continually rolling out new cities and product categories for its Prime and Prime Now delivery services. While these services cost money to join, by delivering products in as little as an hour, they make shopping on Amazon a whole lot more convenient.
And even for customers who select standard delivery, Amazon is consistently adding distribution centers across the U.S. to make the wait for purchased goods as short as possible. The retailer currently has an estimated 100-plus domestic centers in operation.
Add in one-click purchasing, experiments with features like automatic mobile payment buttons, and the looming possibility of drone-based deliveries, and Amazon can truthfully say it strives to make its checkout and fulfillment experience as convenient as possible.
Space Invaders
Remember the classic late 1970s video game “Space Invaders”? Amazon is updating the scenario for the 2010s, except the space it’s “invading” is consumers’ homes, and it’s arriving as a welcome guest.
Amazon is trying to make itself a fixture in the homes of its customers with automatic purchase devices like the Dash button, which lets consumers reorder select staple items at the push of a button-shaped device.
Amazon also lets members of its Prime Now delivery service place voice-based orders using its Echo home artificial intelligence device. Echo uses order history and can place orders using default payment and shipping settings, and can also suggest alternate orders.
Consumers who willingly utilize Amazon shopping devices in their homes may not view Amazon as an invader, but other retailers should. Amazon is literally trying to establish itself as a fixture in customers’ lives. Your CRM and customer experience efforts will have to rise a notch to compete.