The ‘Amazon Effect’ on Mobile Business


People are spending more and more time online, and with Amazon in particular.  It’s also no secret that much of that time is spent spending, and even more of it is spent with Amazon, we call this ‘The Amazon Effect’

A lot of the money going to online retailers is money that used to go to brick-and-mortar businesses. Amazon may be the main beneficiary, but it’s far from alone. As more and more shoppers head to screens instead of stores, brick-and-mortar retailers need to offer better mobile experiences if they’re to have a future.


The Amazon Effect

The ‘Amazon Effect’ continues to dramatically change the way we shop.  This term describes the effect that the entire digital marketplace has had on traditional forms of commerce, like brick-and-mortar retail. Namely, the Amazon effect has introduced consumers to an almost completely frictionless shopping process with near-immediate results.  The expectations are huge, and the reality of poor experience can often cripple small and medium sized businesses.  One or two poor reviews can stay around for years and be very difficult to explain to customers.

The Amazon effect has also spilled over into more traditional spaces such as travel, health insurance, education and many more. Customers now want the same experience, whether they’re in front of their computers, inside a shopping mall, learning, being advised or being entertained.


Four Ways Retailers Can Counter The Amazon Effect

Mobile BusinessThe very real impact of the Amazon effect can be seen all over the world. Every year, more retail locations close down. Those that want to continue will need to take a page out of Amazon’s book by offering customers a technology-driven experience that meets their lofty standards.


1. Use brick-and-mortar to support online stores.

While physical spaces still serve a purpose, forward thinking companies are rethinking what that purpose is.  Customers pick up their online orders and make returns in store, but can also get advise and feel like there isn’t a sense of competition between the store and the online portal.


2. Track customer behaviour in store.

Everyone knows that you can use analytics to improve your website, but these digital tools are now increasingly effective in offline stores.  Retailers like Tesco have continued to innovate in the ways that consumer purchase data and online data are utilised to both improve the businesses understanding of their customers, but also provide benefits to those customers through promotions and offers tailored to their needs.


3. Leverage mobile technology in store.

In this way, mobile and offline stores can work together to accommodate shoppers who are becoming more independent. The retailer’s opportunity is in providing a mobile experience that will make it as easy as possible for them to make a purchase, as quickly as possible.


4. Be more nimble, agile and innovative

Amazon is a big behemoth, if you can’t move quicker than them, then you haven’t got your processes right.  Think about the different ways you could innovate your particular products and services to provide a little bit better service or solution than Amazon can.  It might not win everyone over, but it can be beneficial to differentiate yourselves that little bit more.


The Future Of Retail

Mobile Business GrowthThe physical stores that will be most competitive in the digital age will be those that are able to offer something online stores can’t.

They will need to be innovative, move fast, and in many cases fail fast.  As with any digital business in the 21st Century, if you don’t do it quickly, then someone else will.


Find out more

If you’d like to find out more about Mobylise™ and how we can work with you to improve your mobile retail experience, then please get in touch.