Amazon is the world’s third-largest retailer and has totally transformed the way consumers shop, especially in the United States.
Amazon offers ease, convenience, and extremely low prices, attracting consumers to order groceries, household items, clothing, and of course, books, online instead of in retail stores.
The genius of this massive retailer- and one of the most powerful companies in the world- is that it goes direct to the customer, skipping over in-store retail. In fact, Amazon is even taking over the traditional retail experience, as it recently purchased Whole Foods Market for $13.7 billion, marking a monumental shift for both companies.
Customers who normally shop at this historically pricey, upscale supermarket offering organic produce, meats, grocery staples, and alternative health products will find prices are slashed. Whole Foods also anticipates the following changes:
- Amazon Prime members will be offered special savings and in-store benefits
- Lockers will be available in some Whole Foods stores for Amazon customers picking up or returning orders
- Some Whole Foods stores may be including in-store Amazon bookstores, as well as showcasing Amazon technology
- Customers may be able to receive grocery recommendations from Amazon based on their previous shopping history with database marketing
There are 85 million Prime subscribers to Amazon, up 35% from last year—and the numbers continue to grow. Last year, Amazon jumped 154 spots to become no. 83 on the list of the world’s biggest and most powerful public companies, according to Forbes.
And they continue to expand, grow, and gain new subscribers and customers.
The merger also sets a powerful example for other major chain retails to increase their online presence. As the internet becomes more and more central to the consumer experience in the U.S., companies like Walmart are feeling the pressure to follow suit. In fact, Walmart and Google recently announced a major partnership that may challenge the behemoth Amazon. Customers will now be able to order Walmart products on Google Express, Google’s online shopping mall.
Here’s a video with more information and news about this retail trend:
Let’s face it- retail is shrinking.
So, what can direct marketers do in the face of this challenge?
Amazon offers lower prices and direct-to-consumer experience. Direct marketers must know how to respond to this challenge with smarter marketing. In fact, direct marketers can even take advantage of this opportunity.
Now, more than ever, direct marketing is key to the success of your business.
Here are three keys for direct marketers to meet the Amazon challenge:
- Reinvent and re-examine your marketing approach. Is what you’re doing effective?
- Are you making the #1 marketing blunder? Image-based advertising is the biggest mistake you can make as a marketer. You need a scientific approach to advertising.
- Consider integrated, multi-channel marketing. Market your product or service to prospects and customers across a number of channels, including email marketing, Facebook, banner ads, YouTube preroll ads, and more.
If you would like to discuss your direct response marketing strategy and approach, give me a call at 310 212 5727. Or, email Caleb at [email protected].
