Report: Retailers should be embracing Amazon as a distribution option

A new Bluecore report reveals retailers should be embracing Amazon as a distribution channel and that research indicates 44 percent of brand marketers are "paralyzed by the competitor."

Just 35.3 percent of retailers are taking "technological action" to maintain market share, states "A New Path for Retail: Co-Existing with the Force of Amazon" study, according to a press release.

The research indicates 44 percent of retailers don't know how to respond to the dominance of Amazon, and others are grappling with free shipping, better access to customer data and email communications.

"Brands are at a crossroads. The choice is: compete against a company that spends more than $10 billion annually in R&D, or leverage that incredibly powerful distribution channel," said Jared Blank, senior vice president of data analysis and insights at Bluecore, in the release. "The world's largest brands are using Amazon as a distribution channel, and their revenue and earnings reports are seeing a sizable uptick. It's not about failing to go it alone, it's about learning to co-exist with this ecommerce behemoth – and embracing the right strategies for your own digital properties to continue to build brand awareness and loyalty."

The release noted that 30 percent of the retailers surveyed for the report currently sell their products through Amazon. However, for 9 percent of those retailers, 50 percent of their sales come from this channel.

"Amazon exceeds at listening to its customers. Coming anywhere close to Amazon's success in this area will require retailers to capture data on customer behaviors and preferences, and analyze that data to fuel more intelligent decision making and more personalized experiences," said Blank in the release.

Topics: Consumer Behavior, Customer Experience, Customer Service, eCommerce, Marketing, Merchandising, Online Retailing, Psychology, Shopper Marketing, Top 100 Retail

Companies: Amazon

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