Amazon is predicted to be 9th biggest retailer in the world by 2018 but has no stores.
The Group reported Q3 losses of US$437 million.
In the UK the impact on leading High St retailers has been devastating.
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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