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Battling Amazon With Amazon getting its fingers into every pie, a key challenge for businesses in 2018 is working out “What Amazon Can't Do."

Impressive sales, competitive pricing AND a vast inventory... FOR MANY IT SEEMS THAT trying to compete with Amazon IS FUTILE

Future Thinking's 2018 Retail & Leisure Barometer investigates the opportunities for growth and identifies the key consumer targets for retailers who are ready to do battle!

93% of consumers have made a purchase from Amazon – those who haven’t, tend to be less affluent

The most frequent Amazon shoppers are young, affluent families

And they are also less likely to do their main grocery shopping from large supermarkets. Opting instead to shop online or from convenience stores

1 in 4 shop with Amazon at least once a fortnight
Frequency of purchase

IT’S NOT SURPRISING THAT THOSE WHO BUY FROM AMAZON FREQUENTLY ARE MORE LIKELY TO USE A WIDER RANGE OF AMAZON PRODUCTS AND SERVICES

The most frequent Amazon shoppers also typically use 1.7 Amazon products or services
Regardless of frequency of shopping with Amazon, all shoppers value convenience and price in equal measure

Convenience isn’t the main reason for choosing Amazon – cost is equally important. For other online retailers looking to challenge Amazon, they need to be conscious of hitting the ‘sweet spot’ between convenience and cost

Who should retailers be targeting to win back share from Amazon and from which categories?

  • Shoppers who shop with Amazon less often
  • Shoppers who wouldn’t consider shopping with Amazon
  • Categories which currently buy online but wouldn’t consider buying from Amazon
Those shopping with Amazon least frequently tend to be older (aged 50+), empty nesters and less affluent… They are also less likely to shop online - both grocery and for other categories

WHICH CATEGORIES ARE SHOPPERS WARY OF BUYING FROM AMAZON?

Topping the list of categories that shoppers wouldn't consider buying from Amazon is insurance, an area that the internet giant is looking to disrupt in 2018. There are immediate opportunities for groceries and children’s clothing retailers to really hone their offering and differentiate from Amazon.

Other top targets for online retailers to focus on include...

Categories for online retailers to focus on in 2018 in the battle against Amazon

Data comes from our Future Thinking 2018 Retail & Leisure Barometer. An annual independent study of trends and habits for the year ahead. The survey monitors the behaviours of more than 2,000 primary household shoppers to determine consumption and behaviour trends.

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Photos courtesy of Getty Images

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