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How the online retail giant has
disrupted an industry

part 1

The eCommerce Explosion

The US eCommerce market is on track to reach $414 billion by 2018, up 40.8% in a mere four years

part 2

Amazon is Fuelingthe eCommerce Explosion

Amazon has fueled the eCommerce explosion, accounting for more than half of US eCommerce growth in 2016

Additionally, Amazon increased its market value by a whopping 1,934% in the 10 years from 2006 to 2016


Often, this success has come at the expense of other retailers, with Amazon moving nearly 6x as much eCommerce merchandise as the eight biggest brick-and-mortar retailers combined

8 Biggest Retailers
part 3

Amazon for the Win: 3 Strongholds for the eCommerce Giant

Amazon led the online retail category in the 2017 Customer Loyalty Engagement Index, meeting customer expectations 94% of the time

Three key points of differentiation for Amazon include:

site experience

Delivery speed matters, with 69% of consumers rating one-day delivery as a key incentive for shopping online more

Notably, Amazon reduced its average ship time by about 1.5 days over the past two years, putting its shipping at two days faster than the average competitor

Amazon +2 Days competitor

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site experience

Amazon has the second-highest rated website experience in the US, and 33% of consumers choose Amazon over other retailers because of its site experience


Search, in particular, makes a big difference, as 41% of consumers have left a retailer’s site for Amazon after a poor search experience


Amazon has also created a stickiness with consumers, as 55% of US consumers will begin an online product search on Amazon compared to 28% who start on a search engine and 16% who start on a retailer’s site

Search Engine
Retailer's Site

Additionally, 9 in 10 consumers comparison shop on Amazon even if they find a product they want on a retailer’s site

part 4

Can Retailers Compete?

There’s no denying Amazon’s stronghold on the eCommerce market, but retailers can compete — it’s just a matter of finding the right opening

The biggest opportunity lies in personalization, as 41% of shoppers say better personalization would make them more likely to buy from a retailer over Amazon and only 33% of consumers rate Amazon’s site personalization and product recommendations as superior to other retailers

Want Better Personalization
41 %
Rate Amazon Personalization Superior
67 %
33 %
Retail’s Opportunity to Compete
part 5

What to do next

What does the growing force of Amazon mean for retailers? And what does it take to compete? Get the answers in the full State of Amazon report

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