{"id":22642,"date":"2023-12-13T11:23:25","date_gmt":"2019-08-26T13:44:00","guid":{"rendered":"https:\/\/www.bloomreach.com\/library\/how-to-compete-with-amazon-in-8-ways"},"modified":"2025-05-30T10:25:20","modified_gmt":"2025-05-30T10:25:20","slug":"how-to-compete-with-amazon","status":"publish","type":"library","link":"https:\/\/www.bloomreach.com\/en\/blog\/how-to-compete-with-amazon","title":{"rendered":"How to Compete with Amazon in 8 Ways"},"content":{"rendered":"

There’s no denying that Amazon is a formidable competitor. An EMarketer study puts 37.7% of US online retail spending on Amazon<\/a>.<\/p>\n

Euromonitor International estimated Amazon to have captured a 31% share of UK online retail sales<\/a>.<\/p>\n

That\u2019s not all down to Amazon direct either, third parties actually capture the bulk of these huge revenues.<\/p>\n

And Bloomreach\u2019s own research shows that Amazon is increasingly where consumers turn to begin their product searches online.<\/p>\n

\"where<\/p>\n

In the US for example, independent merchants account for 58% of gross sales on the retail site<\/a>.<\/p>\n

But again, parts of the story were overshadowed by Amazon\u2019s dominance. The headline-grabbing statistic resulted from a question that asked consumers where they start their searches. Retailers might be more interested in where consumers end their searches \u2014 as in where they actually buy.<\/p>\n

It\u2019s Not All Bad News for Competitors<\/h3>\n

Amazon is huge, but competitors can still survive in its shadow. If they use the tools at their disposal, they can actually do very well.\u00a0One of those tools is differentiation.<\/p>\n

Yory Wurmser, eMarketer\u2019s principal retail analyst, says there are a number of ways retailers can differentiate themselves from Amazon.<\/p>\n

“The retailers that are really doing well are the ones that have optimized their websites<\/a>,” Yory explains, “The ones that have really made it as easy as possible for consumers to use the sites, mobile web and apps to buy something.”<\/p>\n

Read this next:\u00a0eCommerce Customer Experience: How to Create Great Experiences in 2021 and Beyond<\/a> [blog]<\/strong><\/div>\n

Forget About Competing Head-on<\/h3>\n

With Amazon, competing smart is the key. Going head-to-head is impossible.<\/p>\n

Amazon has a huge market share for everyday products.<\/p>\n

What they don’t do so well, however, is create delightful shopping experiences.<\/p>\n

\"with<\/p>\n

A Wunderman<\/a> Commerce survey of over 3,500 online shoppers in the US and the UK found that 72% of consumers are more likely to shop with digitally innovative retailers<\/a>.<\/p>\n

If there\u2019s more to shopping than finding cheaper prices, things like convenient delivery options become really important. Here\u2019s where it gets more difficult for Amazon to compete.<\/p>\n

Other vendors might also offer more attractive loyalty programs or specialized product ranges. A customer might be after a more personalized service or great in-store experience.<\/p>\n

This is especially the case with more ‘niche’ products where consumers have specific preferences for design, material, quality or brand.<\/p>\n

In these cases, the Amazon model does not make the cut.<\/p>\n

\"where<\/p>\n

Read this next:\u00a0<\/strong>–>{C} [blog]<\/a><\/strong><\/div>\n

8 Ways to Become the Non-Amazon Alternative<\/h3>\n

When it comes to customization and personalization in eCommerce<\/a>, we see that Amazon does not fare too well and certain shoppers tend to replace them with specialized vendors or brands.<\/p>\n

That in itself creates a huge opportunity, which brands and retailers can exploit by leveraging modern technologies to deliver delightful customer experiences<\/a>.<\/p>\n

\"eight<\/p>\n

Psst! Skip the intro and jump straight to\u00a0\u27a1\ufe0f<\/p>\n

1.\u00a0Make finding and buying easier<\/a><\/strong>
\n2. Create personalized assortments: One size does not fit all<\/a><\/strong>
\n3. Inspire and educate customers<\/a>
\n4. Select the right technology<\/a><\/strong>
\n5.\u00a0Engage directly with your customers<\/a><\/strong>
\n6. Help with buying decision<\/a><\/strong>
\n7. Differentiate your delivery options<\/a><\/strong>
\n8.\u00a0Delight your customers\u00a0<\/a><\/strong><\/p>\n

<\/a>
\n[Way #1]\u00a0Make finding and buying easier<\/strong><\/h4>\n

The site search bar may seem like a small feature, but it offers a lot of potential to differentiate.<\/p>\n

Take the example of doing a regular search on Amazon for a ‘black laptop’. A rather random selection is generally presented that includes laptop bags, batteries and eventually somewhere in the mix, laptops.<\/p>\n

\"\"<\/p>\n

Brands and retailers can do much better.<\/p>\n

Smart, self-learning search functionality makes it easy to create search experiences with relevant results<\/a>.<\/p>\n

Customers get exactly what they are looking for, so buying a product is less time consuming.<\/p>\n

An increasing number of online shoppers are using mobile devices, while mobile shoppers frequently use site search.<\/p>\n

This aspect of online retailing is more important than ever, and technology is crucial to making it work.<\/p>\n

Read this next:<\/strong>\u00a0Semantic Search Explained in 5 Minutes<\/a> [blog]<\/strong><\/div>\n

<\/a><\/p>\n

[Way #2] Create personalized assortments: one size does not fit all<\/strong><\/h4>\n

Another thing Amazon doesn’t do well is curating the right content for the individual visitor.<\/p>\n

This creates a great opportunity for others to differentiate.<\/p>\n

Even without a visitor logging in, businesses can use browsing behavior, overall consumer trends and real time visitor data to personalize real-time experiences.<\/p>\n

Imagine a visitor browsing for women’s clothing.<\/p>\n

They have clicked mostly on blue items and are now searching for “sweatshirts”. Putting that information together, it makes sense if blue women’s sweatshirts are bumped to the top of the results.<\/p>\n

\"\"
\nThis kind of smart personalization can be very dynamic too.<\/p>\n

Let\u2019s say another family member uses the same computer to shop.<\/p>\n

Their needs are different, but algorithms can quickly discover a different browsing behavior and adapt the content accordingly.<\/p>\n

Read this next:\u00a012 Steps to Perfect Personalization <\/a>[guide]<\/strong><\/div>\n

<\/a><\/p>\n

[Way #3] Inspire and educate customers<\/strong><\/h4>\n

Amazon offers an almost infinite product catalogue and plenty of user generated content in the form of reviews.<\/p>\n

When it comes to inspiring and educating customers however, it falls short. Contextual content is simply not there.<\/p>\n

Compare that with the shopping experience at recreational equipment seller, REI.<\/p>\n

Product information almost becomes a side issue because it’s intertwined with rich content like videos and engaging blog posts.<\/p>\n

This specialized retailer takes visitors on a virtual journey to their next travel destination. It inspires them to go places they haven’t even thought of yet.<\/p>\n

REI<\/a> also connects the online experience to physical events like workshops or training sessions.<\/p>\n

Engaging experiences like this create loyal customers that don\u2019t just buy products, they fall in love with the brand.<\/p>\n

Read this next: How to Bring Content and Commerce Together<\/a> [blog]<\/strong><\/div>\n

<\/a><\/strong><\/p>\n

[Way #4] Select the right technology that can enrich the shopping experience<\/strong><\/h4>\n

A big hurdle the majority of brands and retailers face is their legacy systems, in particular legacy eCommerce platforms.<\/p>\n

These platforms were built to create product grids and facilitate checkout.<\/p>\n

They don\u2019t create engaging experiences, or enrich the shopper experience.<\/p>\n

This is such an issue that commerce platforms are no longer considered the future core of eCommerce.<\/p>\n

Businesses that really want to deliver customer experiences must move away from legacy commerce platforms and implement a combination of headless commerce<\/a> with an experience platform<\/a> on top.<\/p>\n

This setup empowers them to deliver all kinds of omnichannel experiences<\/a> – not only via channels customers are using now, but also the channels of the future, like voice or augmented reality.<\/p>\n

<\/a><\/strong><\/p>\n

[Way #5]\u00a0Engage directly with your customers<\/strong><\/h4>\n

In a world of shifting business models, many retailers are chasing a less Amazon-like strategy.<\/p>\n

Some even want to protect their brand by shying away from this online giant.<\/p>\n

\"people<\/p>\n

Instead they offer unique product lines and a sense of community.<\/p>\n

They create interest and build a community of people, those who know the special place to buy their products.<\/p>\n

They drill down into the data on customers and visitors, building an accurate picture of their interests, needs and future requirements.<\/p>\n

Using this data, they present relevant topics on the website, let people comment, discuss, or share via social media.<\/p>\n

This all builds involvement and commitment to the brand.<\/p>\n

People no longer just buy a product, they learn, join the conversation and become part of an ecosystem.<\/p>\n

Read this next:<\/strong>\u00a0How Shoppable Instagram Stories is Driving Change in eCommerce<\/a> [blog]<\/strong><\/div>\n

<\/a><\/strong><\/p>\n

[Way #6]\u00a0Help with the buying decision<\/strong><\/p>\n

There’s no doubt that Amazon gets your chosen product to you quickly.<\/p>\n

Returns are easy too if what\u2019s delivered is not exactly what you want.<\/p>\n

But what if you visit Amazon without a clear idea of what to buy?<\/p>\n

Those who haven\u2019t quite figured out what they want are pretty much on their own with Amazon.<\/p>\n

It\u2019s just not good at helping people understand the intricacies of a product line or category they are unfamiliar with.<\/p>\n

\u201cWhat they\u2019ve really spent most of their time on is the point-of-sale and post-sale,\u201d says Jeff Adcock, Chief Revenue and Marketing Officer at Needle, a company that connects retailers and brands with product experts and enthusiasts.<\/p>\n

Technology can be used to support customers in their decision-making.<\/p>\n

An arsenal of useful tools can be offered including reviews, recommendations, digital advice, product finders, live chat, even social media.<\/p>\n

Incorporating these supports into the sales experience will ensure customers have no reason to shop elsewhere.<\/p>\n

<\/a><\/p>\n

[Way #7]\u00a0Differentiate your delivery options<\/strong><\/h4>\n

Amazon has a delivery system that works, but not for every single customer.<\/p>\n

Some people would swap two-day home delivery for curbside pickup with an exact delivery time.<\/p>\n

Others might like the option of collecting their goods in-store.<\/p>\n

Ideally people could select their choice of channel(s) in line with what suits them at a particular time.<\/p>\n

Whatever option they choose, good fulfilment is crucial.<\/p>\n

Customers expect timely delivery over any channel. With less than half of consumers considering 3 days to be fast delivery<\/a>, a refocus on training and logistics is needed to ensure that.<\/p>\n

If a customer orders online via their smartphone, will that product be in stock when they collect it in-store?<\/p>\n

Read next:<\/strong>\u00a0German publisher’s online service portal that puts customers first<\/a> [blog]<\/strong><\/div>\n

Businesses should address these questions so customers don\u2019t have to.<\/p>\n

With back-end systems running smoothly, it\u2019s also important to communicate well.<\/p>\n

Be clear on when and how orders will arrive. Provide set timelines, then keep those promises.<\/p>\n

Online shopping still has a certain element of risk.<\/p>\n

Businesses that remove that fear of the unknown can establish themselves as a trustworthy go-to provider.<\/p>\n

The technology exists to offer worry-free online shopping and it\u2019s key to succeeding against giants like Amazon.<\/p>\n

<\/a><\/p>\n

[Way #8]\u00a0Delight Customers\u00a0<\/strong><\/h4>\n

Amazon does a lot of things really well and that\u2019s made them a mammoth in their industry.<\/p>\n

\"customers<\/p>\n

The Amazon model delivers but there are some serious gaps, which the competition can exploit.<\/p>\n

In a world of increasing competition and smart tech, it\u2019s not enough to serve customers.<\/p>\n

They need to be delighted, cared for, and turned into loyal fans.<\/p>\n

That means using technology to create engaging, connected experiences.<\/p>\n

Customers want easy search, helpful advice, contextual experiences, efficient delivery and confidence-building communications.<\/p>\n

These are today\u2019s winning factors, but with Amazon, they\u2019ve fallen out of the net somewhat.<\/p>\n

Brands and retailers can be there to catch those opportunities.<\/p>\n

By leveraging technology to offer new options, personalized experiences, even a sense of community, the non-Amazon players can set themselves apart.<\/p>\n

It\u2019s very possible to capitalize on Amazon’s shortcomings.<\/p>\n

By doing so, competitors can not only withstand the force of competition, they could even turn the tide.<\/p>\n