What’s not to like about Amazon, right? The reasons are obvious; Amazon is easy, fast and well-priced. I’m a customer. I’m not a recreational shopper, so finding and purchasing an item quickly is often what I’m looking for. Clearly positioning anything as fast and easy is a winning strategy. We’ve all fallen for microwave popcorn and bagged salads knowing we’re sacrificing quality for convenience. Many consumers make convenience the single deciding factor when shopping, even over price.
According to a survey conducted by BigCommerce last year, about 40% of Millennials, Gen-X and Boomers shop Amazon because they enjoy the speed and convenience the brand offers. The same group reveals that Amazon’s brand reputation accounts for only 1- 3% of their motivation to shop with Amazon. Hmm… what have they done to deserve that? Or haven’t done? When they asked the same group why they shop with branded commerce sites the reasons shift. Only 20 – 25% report speed and convenience are factors, but 10 -15% say brand reputation drives them.
Here’s the thing, when we’re talking about selling items on a website, Amazon is a one-trick pony. Okay, a one-trick Clydesdale with a big trick. But still, they do that one thing exceedingly well, they make everything easy! Their site development and usability are brilliant and clearly drive their success. Amazon has such vast resources that the little guy, or even the big competitor, will never keep up with a functionality that can compete. And, speaking of scale, not unlike Walmart, Amazon’s preeminent market position allows them to demand vendor terms that squeeze margins when we want to partner with them.
Is this world retail domination?
No. There is a crack in their armor, it’s that brand reputation of 1 – 3%. When a brand doesn’t speak to their customer and the only relationship is transactional it’s off-putting, especially to Millennials and Gen-Xers who demand a more personalized experience. Shoppers still might go solely for the convenience factor, but it doesn’t FEEL great. I think we can all agree that from a personality standpoint Amazon is a wasteland. There is no story, there are no affinity driving quality, just an easy deal. They’re the best at transactions but rely solely on the product they sell to engage the consumer. And, it’s not even their product!
Here are five ways we can battle Amazon for our share of online sales:
- Fix your site!
You may not be able to compete with Amazon in terms of search and functionality but fix the obstacles to a fast check-out. Be sure your site allows the shopper to buy fast, don’t complicate the journey to checkout. Create a short funnel option, let them go straight to the product page at any point. And invest in your internal search. Tag products with terms that make sense to the shopper. There are many known best practices, little fixes that can make a big difference. Suffice to say, spend some money on a usability study and act on the results. - Sell proprietary, branded products on your site
Even if you’re selling some items on Amazon, you should offer the largest selection of your branded products on your own site. This will provide an opportunity to develop traffic driving campaigns promoting exclusive offers and products on your website. - Brand your site
Think of Amazon as the obnoxious used car salesperson. They might offer the best deal, but some people will pay a few more dollars, or wait a few more days to deal with someone they connect with. That’s the bet you make when you invest in branding. Take a look at Allbirds or Warby Parker, these guys know how to speak to their audience. It’s respectful, fun and clearly effective. - Launch a loyalty program.
Airlines have known this forever. By some estimations, (airlines don’t share a lot about their loyalty programs), loyalty programs account for up to 50% of an airlines profit. Granted, it’s a different model, but according to the BigCommerce study, 10% of Boomers and Millennials shop branded websites because of loyalty or rewards programs. It’s not huge, but we need to eat Amazon in small bites. - Use other channels to drive traffic to your branded site.
We know from talking to our own clients that site traffic can spike up to 40% when they mail a catalog or even a small direct mail piece to their customers. And well, branded social and email programs drive awareness and traffic that will convert on your site. Amazon is the email spam king, but again, not with any brand strategy that’s not created by an algorithm. A more thoughtful branded strategy will stand out in an inbox.
Amazon doesn’t have to the rule the world. We can create value for consumers that handily competes with Amazon’s fastEST and easiEST approach; we just need to lean into a well-functioning emotional approach.
If you have more ideas on how to take a bite out of the Amazon share, send me note. Would love to hear from you.
Tags: branding, consumer attention, consumer behavior, digital marketing, neal schuler