News & Insights

How Amazon Continues to Gain Market Share – And Ways You Can Grab a Slice

The explosion in e-commerce in recent years has produced an undoubted winner – In 2021, the online retail giant is expected to seize 50% of the entire e-commerce marketplace, a trend that will likely continue in perpetuity. But what is Amazon doing so well that its reign seems unstoppable? How do they continue to win while others can’t seem to keep up?

1. Amazon has an unrivalled logistics empire – And continues to invest in innovation

A network of warehouses, a fleet of delivery vehicles, and the promise of next-day delivery (same day for Amazon Fresh products), it’s hard for any organization to out-logistic Amazon. Even Walmart, with its long-established infrastructure, can’t compete with Amazon’s use of artificial intelligence to predict buying behaviors and demand and put products in the hands of consumers as quickly as possible. The efficiency of Amazon’s logistics infrastructure is so streamlined, they can even make real-time order modifications and delivery updates, all within just a few hours of a scheduled delivery.

2. Amazon is where consumers go first – for everything from A to Z

Amazon has mastered the art of the frictionless buying experience. With a single account, consumers enjoy one-click access to millions of products, reviews, recommendations, and free shipping. It’s no wonder it’s the default shopping channel for today’s consumer. A whopping 63% of consumers start their online shopping search on Amazon. If your brand isn’t selling on Amazon, it will lose out to competitors who do. While on the surface Amazon may seem like a standard online retailer, the fact of the matter is that under the hood is a robust, tech-enabled personalization engine that helps brands get in front of the right customers, at the right time, leading to increases in overall cart value and customer lifetime value.

3. Amazon is primed to deliver continuous value – across industries, categories and offerings

Amazon has done an amazing job of staying top of mind. Amazon Prime and its perks keep consumers coming back, but Amazon has gone one step further. The Amazon brand is pervasive. Amazon Prime connects to Alexa devices, making it easy to stream content. Then there’s Prime Video, Amazon Fresh, Prime Reading, Prime Wardrobe, Amazon Key – all accessed via a single account.That value is hard to beat. And consumers who don’t opt for the all-in-one Prime offering, are likely to find something Amazon offers that will provide value under the Amazon Prime umbrella.

Your brand must meet consumers where they are

If your brand is not selling on Amazon, it should be. But if you’re worried that Amazon will cannibalize your existing e-commerce strategy or that you’ll lose control of the brand experience, I’d argue otherwise. Ideally, brands look at Amazon and their own site as the primary channels. Read more from Amify CEO, Ethan McAfee, about why your brand may want to consider developing an Amazon strategy and where you should start.