[August 09, 2017] |
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Can't Beat 'em? Report from Bluecore Says Retailers Should Embrace Amazon as a Distribution Channel
Brand marketers know they need to combat the force of Amazon, but they
lack the strategy, the marketing dollars and the digital resources to do
so. In a report from Bluecore, the decisioning platform company
illustrates retail marketers' struggles with the giant competitor,
highlights their failure to act and underscores the best way to overcome
this challenge: Use Amazon as a distribution channel.
According to "A
New Path for Retail: Co-Existing with the Force of Amazon," 44
percent of retailers still do not know how to respond to the power of
Amazon, while others are grappling with free shipping, email
communications and better access to customer data to mimic what Amazon
does best: Provide highly personalized and convenient experiences for
customers. While better data and experiences are important, Bluecore's
experts say it's time to stop fighting the inevitable and embrace the
opportunity to sell products through Amazon.
"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. "Brands cannot
ignore this partnership any longr. With an increasing number of Amazon
Prime customers and more consumers beginning their product searches on
Amazon, it's simply ridiculous to think you're going to succeed alone.
The world's largest brands are using Amazon as a distribution channel,
and their revenue and earnings reports are seeing a sizeable 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."
To date, only 30 percent of the retailers surveyed for this 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. "The intent is fantastic, but many brands are severely limited in
their abilities to obtain and digest this level of data. Even with an
exceptional data and customer experience team, the risks are just too
high. It's time to accept Amazon as friend, not foe."
Other data uncovered within this report includes:
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29 percent of retailers haven't changed data collection and analysis
processes as a result of Amazon's influence
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60 percent of retailers consider Amazon at least somewhat of a
competitor
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63 percent of retailers believe free shipping for loyalty program
members is one of Amazon's most impactful consumer-facing technology
initiatives
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Only 10 percent of retailers have significantly increased investment
in technology to better compete with Amazon
To publish this report, Bluecore partnered with NAPCO Research to survey
more than 250 retail executives in May 2017.
To read the full report, please visit Bluecore's website: http://bluecore.com/
About Bluecore Bluecore is the leading Decisioning Platform
for commerce, powering unique interactions by unifying customer and
catalog data. At Bluecore, we are empowering the world's top retail
marketing organizations to take meaningful, immediate action on data
through the creation of highly targeted audiences for multi-channel use.
For more information, visit www.bluecore.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170809005217/en/
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