You’re probably well aware that Amazon is now the biggest eCommerce platform on the planet….someone needs to pay for those space trips! Adoption of Amazon’s sales channel is growing at an incredible rate around the globe. At its place of birth in the USA, Amazon accounts for more than 50% of all online retail sales. This is very much helped by an estimated 150M+ Amazon Prime members in the USA, who look to Amazon as their first online shopping choice due to free delivery amongst other benefits.
Amazon continues to invest heavily in improving its sophisticated fulfillment centres and supply chain solutions. Whilst sellers have the flexibility of shipping orders direct to consumers via FBM (fulfilled by merchant), they can also send inventory in bulk directory to Amazon and let them do all the heavy lifting by taking advantage of Amazon’s FBA (fulfilled by Amazon) solution. These are becoming more sophisticated with the introduction of robotics and are a game changer for businesses not set up for / interested in DTC distribution.
As consumers, we should be excited by the innovation coming down the Amazon pipe. Take Amazon Prime Air for example- its Amazon’s autonomous delivery by drone service which will see packages delivered within 30 mins of ordering- and we’re told it’s not far away. In the US, Amazon Air (different to Amazon Prime Air) is literally a cargo airline competing with the major postal services to deliver Amazon packages exclusively. Amazon Flex is the latest service offering to roll out. It’s a familiar Uber style set-up that allows anyone with a drivers licence, qualifying vehicle and a smartphone to deliver packages for Amazon- just another move to get packages to consumers faster.
Amazon has also changed the game for brands looking to expand their presence on the global stage. Amazon’s high (and growing) penetration rate combined with its sophisticated fulfillment and supply chain solutions make international expansion a real possibility for brands who historically faced significant barriers in the form of establishment, marketing and operating costs to grow their brands offshore.
In short, Amazon is already one of the most successful companies in the world, but it feels like they’re just scratching the surface when it comes to disrupting seller models and raising the bar of consumer expectation.
If you want to understand the sales potential Amazon can generate for your brand, reach out for a chat.