Selective pricing and customer retention efforts are among the lessons for retailers.
A Mintel study found that 86% of shoppers use Amazon and a majority of shoppers also begin their shopping on the platform. The study shows that Amazon enjoys considerable consumer favour as 39% of UK shoppers have access to Amazon, with 26% being members. 13% of customers place orders using other people’s accounts.
This article points out some of Amazon’s customer focussed efforts that other online retailers could benefit from. For example, Amazon’s Prime service plays a big part in retaining customers and in increasing the customer lifetime value: the retention rate for Prime users is 90%.
In pricing, 51% of consumers believe Amazon offers the lowest prices. The author notes that this perception is important for the brand. Instead of competing with Amazon by discounting (and harming profit margins), other retailers could offer “selective and smart pricing”.
[12 minute read]