Has Amazon peaked in regards to disrupting retail?

Has Amazon peaked in regards to disrupting retail?
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Has Amazon peaked in regards to disrupting retail?

As a digital marketplace Amazon has brought great impact in retail by way of bringing exciting innovations in customer service according to the expectations of customers as well as their present shopping trends. People the world over now speak about the “Amazon Effect”. Many among the erstwhile retail giants of the world are now struggling for their survival consequent to the “Amazon Effect”. The past two decades saw the disruption of the retail world which happened as a result of the aggressive growth of online shopping at Amazon. The revenue created by Amazon during that period could break all previous records. This is called the “Amazon Effect”. However, Amazon is not a monopoly though the company’s growth in retail world has been amazing. Amazon managed to gain a huge share of the steadily growing online market by snatching the share of the brick and mortar retailers. The brick and Mortar retailers were unable to offer the ‘long tail’ of products as offered by Amazon through their online shop. Many traditional retailers however succeeded in their efforts to reduce the impact of the “Amazon Effect” at least to some extent by providing their customers various in-store services such as personalized selection of goods and installation advice. This approach by the traditional retailers created positive outcome because such services cannot be provided online.

Leading brands still rule the market

Amazon could however increase the pressure due to competitive pricing of various consumer goods including packaged food items, beverages, diapers and more. There was a widespread fear that the small brands will be able to put up a big challenge to the big brands that rule the market, as a result of the drastic increase in online shelf space. But, that didn’t happen. The consumers remained favorable to those shops who appear on the first page. The first page is always occupied by the leading brands.

Product pages with quality content is vital

Though the affiliate network of Associates built up by Amazon is very strong, the retailers will be able to drive traffic to their product pages only if they create outstanding product pages. They can pull the attention of the buyers only by making their product pages unique. The reviews, information about the manufacturers and information pertaining to purchases done by other customers make the product pages of Amazon rich in content. Going through the product reviews is always an important part of Amazon shopping. The buyers consider the product reviews provided by Amazon as a reliable source of information regarding the pros and cons of a product. However, one has to keep in mind that user rating alone is not sufficient to know the quality of the product. Unless the retailers provide fresh, reliable, informative and interesting content in their product pages they can’t make the product pages more impressive so as to capture the attention of more number of potential customers.

The great disadvantage of Amazon is that they are selling more than half a billion products all of which are to be presented in a uniform way for the convenience of those who browse the site. Though the product pages of Amazon are visually not so appealing, they keep on enhancing the content by way of ongoing optimization.

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Steven M. Degener, J.D. Clayton, CA, United States Steve has spent over 25 years in Retail Loss Prevention. His last position held was VP of Loss Prevention for a Fortune 500 company. Other positions include Deputy Sheriff and Director of Loss Prevention Services for various Retailers. Our sites include www.LossPreventionAcademy.com,LPPosters.com and LPjobsFREE.com. Follow us with Twitter at LPACADEMYcom and Facebook at the Loss Prevention Academy.