Amazon: Retail's Biggest Disruptor

By Katrina Makins | 08 Sep 2018

The UK high street has changed drastically over the past decade, with brands facing more challenges than ever to thrive in today's customer-first world.

All the while, digital ad spend has been creeping up steadily year-on-year, and online consumption and behaviours have seen customers evolve to become more digitally-oriented than ever.

So, as many brands look to focus their marketing efforts in order to flourish both online and offline, there's a wider challenge at hand: Amazon. It's reported that Amazon made up 89% of all online spending among major retailers in the run up to Christmas 2017, and Amazon also boasts some exceptional brand trust creds too: "two in five Prime members and more than a quarter of non-Prime members always check Amazon before making a purchase on a different website", according to Forbes. These research patterns, and Amazon's immense customer base and capabilities, are certainly worth consideration for retailers, as they mark a clear opportunity to increase sales through greater visibility on Amazon. But are marketers really capitalising on the opportunity?

We sought to understand to what degree brands are embracing Amazon's capabilities as its popularity continues to surge among customers. To do so, we surveyed over 200 digital marketers across the UK to uncover the impact Amazon has had on their planning and marketing strategy.

The results of our research revealed some interesting findings on how digital marketers are approaching competition from Amazon, with some of their biggest concerns being Amazon's competitive pricing and logistical efficiency advantages. Furthermore, respondents highlighted they felt voice search would fundamentally change the way customers search for items over the next 18 months, yet 29% of marketers still aren't adapting their strategy to address the rise of Amazon.