Amazon is winning and competing with the company is hard, but every e-commerce business must have a strategy to address the Amazon juggernaut. With the company's incredible product breadth, strong customer service and continuous investment in user experience, Amazon is continuing to attract more and more customers. In the U.S., the marketer's non-media revenue grew 28 percent year-on-year. And it was investing a greater percentage of its revenue in technology and content (7.9 percent, up from 6.5 percent) to deliver the best service and the most relevant experience to every visitor.
As consumers rapidly shift to mobile on smartphones, Amazon is capturing even more of the market, with 59.36 percent of mobile department store visits. That's 14 percent more than its share on the Web. In addition, it translates to $1.2 billion of investment, not including Amazon's acquisitions.
Consumers are taking notice, too. According to Forbes:
- Forrester Research found that a third of online users started their product searches on Amazon, compared with 13 percent who started their search from a traditional search site; and
- comScore found that product searches on Amazon have grown 73 percent during the last year, while shopping searches on Google have been flat.
Leaders in e-commerce work hard to attract consumers to their sites—using email, social media, paid search, natural search, cross-channel initiatives and, where possible, their physical stores. When they succeed in attracting a new consumer, their sites aren't built to deliver the most relevant experience and consumers bounce. If the consumer isn't presented with something relevant or if it is hard to discover something they want through the experience, it's not like they forego making the purchase. Instead, they go to Amazon.com, and it's important to note that the consumer's tolerance in the mobile world is even less than the traditional Web.