In What Areas Do Digital Commerce Leaders Think They Can Beat Amazon?

December 17, 2019

Nearly 3 in 5 (57%) digital commerce senior decision-makers see Amazon as a barrier to the growth of their organization’s, with 56% saying they believe that the industry would be better off without the e-commerce giant. Yet although one-third (34%) of digital commerce leaders see Amazon as their main competitor, there are some who think that Amazon has areas of weakness they can exploit, per a recent report [download page] from Wunderman Thompson Commerce.

Despite acting as a barrier to many digital commerce businesses, 61% of the more than 500 US and UK senior digital commerce decision-makers surveyed have confidence that they can compete directly with Amazon, as they see areas where Amazon does not do well.

First and foremost, 27% of respondents say they do not think Amazon does well at loyalty, while another 24% cite customer service as an area where they can compete with Amazon. Other areas of potential weakness include delivery (24%), packaging (24%), innovation (24%), choice of products (22%), sustainability (21%) and creating a community (19%).

If respondents could pick one area they feel they can exploit in order to better compete with Amazon, loyalty is it for the largest share (12%). While this may come as a surprise to some, considering that membership for Amazon Prime continues to grow and consumers in the US consider Amazon their preferred place to shop, respondents may have a different interpretation of loyalty that goes beyond membership numbers.

Another area, which 1 in 10 respondents feel is most exploitable, is customer service. This may be with good cause as Amazon appears to have faltered in this area. Although Amazon had ranked at the top of ACSI’s list for customer satisfaction for internet retail since 2010, it lost this top spot to Costco this year.

Others think they will be able to exploit Amazon’s weakness when it comes to sustainability (9% share) or standing for a purpose (7% share). These are both qualities that are important to consumers, highlighted in other research that shows that consumers are attracted to companies that show a commitment to sustainable practices as well as those that take a stand on social issues. And perhaps it’s where Amazon is most vulnerable: research released earlier this year found that while consumers love Amazon, they might be questioning its ethics.

The full report can be downloaded here.

About the Data: The report is based on findings from interviews of 503 senior decision-makers (including C-suites) in digital commerce from the US and UK.

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