According to a December 16, 2015 article on bloomberg(dot)com, Amazon reaped 39.3% of all e-commerce spending between November 1st and December 6th, outcompeting other large retailers like Target and Walmart. This is an increase from 37.9% in 2014, and it is likely to continue to grow next year as well.
Having aggressively built its two day online order shipping program and implemented its new Prime shipping program, Amazon is now positioned to compete with big box brick-and-mortar stores. The pay off for its significant investment into infrastructure is changing how and what distribution channels Amazon can compete with almost any retailer, online or offline.
It’s clear that there is a strong link between supply chain investments, improvements in logistics and the resulting profitability and subsequent growth of a company. Large companies understand the linkages between both customer service and supply side operations. Being able to bring trust, value and added convenience to customers has helped Amazon expand its customer base and land on a playing field where it can take market share from big box retailers.
What do other Retailers need to do to catch up and stay competitive? What can they accomplish this coming year to improve shipping timelines and build their networks?