Rise Above the Amazon Effect: Survive and Compete with DEM

It’s no secret that Amazon dominates the eCommerce space. With 49% of online market share and 5% of retail share, it shows no signs of slowing down any time soon. Amazon’s North American sales have quintupled since 2010, and the company continues to expand past retail into new markets, such as food delivery, entertainment, and even pharmaceuticals — turning itself into a search engine for consumer products. With fast, reliable, and free delivery for an annual fee, more and more consumers are turning to Amazon for all of their needs. 

The Amazon Effect Impacts Shoppers and Retailers Everywhere

The Amazon Effect has affected retailers and shoppers all across the globe. The online behemoth has not only put customer centricity at the forefront of every retail conversation, but it continues to influence delivery optimization across supply chain, specifically the last mile. As more consumers shop online, and as consumer expectations amplify, shoppers expect higher standards of service — they want faster, cheaper, more reliable delivery. 

Consequently, the last mile matters more than ever before. Last mile delivery has become a crucial aspect of the customer experience — and the stakes are high. According to our last consumer survey, it’s almost universal that delivery is a factor of brand loyalty, and 84% of consumers will not return to a retailer after a poor delivery experience.

As a result, many companies are going above and beyond and working towards offering unmatched delivery experiences to their customers. These are no longer specialty offerings; Amazon has groomed consumers to expect a wide selection of delivery options, with other big-box retailers such as Walmart offering competitive solutions to such as same-day delivery text-to-order service JetBlack, in order to beat Amazon at its own game. In the UK, the Amazon Effect has spurred same-day and same-hour delivery for customers with programs such as “ASOs Instant.”

Traditional retailers have a long history of engaging with customers, and the experience necessary to adapt to new landscapes. By utilizing this knowledge and switching up offerings based on consumer needs, companies have the ability to survive the so-called Retail Apocalypse, even thrive.

Surviving and Competing in the Age of Amazon

As Amazon has proven, a responsive and efficient delivery experience can do wonders for a business. Minimizing delivery exceptions not only increases customer satisfaction, but saves money in the long run. Companies like Walmart, The Home Depot, and Target have already implemented convenient solutions for the modern consumer, ranging from in-app delivery scheduling to free, fast shipping on select items. It’s becoming integral for businesses to embrace strategies like these that will enable them to succeed, as consumers with only continue to expect more and more from the companies they buy from. Here are a few other companies that are doing delivery right.

By using delivery experience management — using enhanced visibility and insights to  make both proactive and reactive changes to orders in transit — Grove was able to make its customers measurably happier.

Grove Collaborative has created an exception resolution team dedicated to making sure that their customers have the best delivery experience possible. This team scans shipments for the most commonly reported issues and resolves them so that the customer doesn’t have to. The overwhelmingly positive customer response led to a 9.4% increase in overall NPS for the brand. Even more, Grove’s NPS scores increased 3 points for customers whose packages had exceptions.

To combat the busy holiday season, Uncommon Goods created more transparency within their own teams and for their customers. They utilized customer feedback and both proactively resolved delivery exceptions and sent alerts about any unresolved issues in a timely manner. Taking care of problems before the customer has time to worry about them increases customer loyalty and operational savings down the road.

Sustainable Shipping Strategy with Delivery Experience Management

With consumer expectations so high, it’s strategies like these that are helping retailers impress customers so that they’re willing to shop outside of their Amazon subscription. The online retail giant is here to stay, and others cannot afford to compete by eating through their product margins to dole out faster and cheaper offerings. It’s just not sustainable.

Companies who want to fulfill their own brand promises to their customers in a profitable, scalable way, and who strive to meet — and beat — customer expectations cannot afford to leave the last mile to chance. By perpetually creating amazing delivery experiences with the consumer in mind, companies can differentiate themselves for success as they navigate the Amazon Effect and fulfill their brand promises.

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About the Author

Doan Nguyen

Doan is currently a senior advertising major at UT Austin. As Convey’s Marketing Intern, she helps create content and gets the opportunity to try her hand at all things marketing. In her free time, Doan enjoys trying new restaurants, watching stand-up comedy specials, and reading. After graduating, she hopes to relocate to anywhere with great breakfast tacos; Austin might be hard to beat, though. Doan Nguyen on LinkedIn