Blog Post - Hugh Fletcher, Jul 10 2017

The Dominance and Threat of Amazon

The Dominance and Threat of Amazon

It's hard not to love Amazon. Every product you'd ever need, a few clicks away, supported by a logistics network that will get it to you fast but what does this mean for brands?

Hugh Fletcher, Global Head of Consultancy and Innovation at Salmon, a Wunderman Commerce Company, shares his thoughts on Amazon in this new Whitepaper "The Dominance and Threat of Amazon - and why brands need to start fighting back".

Fletcher said: "Retailers need to consider a balanced strategy on how they compete or collaborate with Amazon. Amazon has seized the day. Put simply, they fulfil their customers’ expectations better than most other retailers in the market. As consumers increasingly look to service, speed and convenience – rather than brand – Amazon sets the standard that others must follow or risk being locked out. The whole Prime premise is built around providing a same-day or next-day delivery. Amazon has even created its own market peaks with its Amazon Prime Day. We call this “proactive peak formation”. Its purpose is to encourage Prime membership and keep customers ordering exclusively through Amazon and away from other brands. With companies like Tesco launching their own one-hour delivery service, we’re seeing other retailers looking to halt Amazon’s dominance.

Download Whitepaper

Salmon recently commissioned some research to gauge just how much of an impact Amazon has with consumers and the results were quite telling:

  • 37% of all online spend is done through Amazon
  • 60% of consumers feel all online retailers should offer same day delivery
  • Six in ten would be more likely to spend with a retailer who is digitally innovative
  • Over half (53%) are more likely to buy from Prime than a retailer’s online store
  • Consumers believe by far that Amazon lead the way in digital retail

Download our report "King of the Jungle" to explore the dominance of the digital juggernaut further and find out if Amazon really does rule retail.

Download Research