Amazon is predicted to be 9th biggest
retailer in the world by 2018 but has no stores.
The Group reported sales of US$ 15.7 billion for
the quarter ended 30th June which generated a net loss of US$7
million.
In the UK the impact on leading High St retailers
has been devastating. Groups such as Comet has disappeared and HMV have gone
into administration. Amazon now has just under 25% share of the UK
entertainment industry.
Obviously they are playing the long game and of the
keys to their future strategy is the latest buzzword "personalisation".
This is the mechanism of presenting customers with tailored, relevant content as they shop and in doing so
increase conversion and generate loyalty
Despite the increased usage of this technology,
it is still relatively new to the market but will undoubtedly evolve to become
a prime factor in driving the future of ecommerce.
More ecommerce companies are devoting
increasing resources to develop personalisation software.
Several leading brands are assigning
more internal resource to creating a truly personal customer experience by
appointing teams of ‘personalisation experts’.
As with traditional retailers ecommerce
companies are now placing greater emphasis on using real insight to make customers
feel like valued individuals as they spend time shopping on line.
All of this blurs the traditional lines
and retailers face a common problem delivering what the consumer demands
efficiently and free of delivery charge at prices which reflect ever squeezed profit
margins.
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