Online shopping utopia Amazon has taken the world by storm. People choose to order from Amazon because of the convenience and efficiency. Who else can offer free shipping for nearly anything within a matter of days? Well, the popular brand is starting to gain competitors. Read further to see how brands are competing with Amazon.
One main way that companies are competing with Amazon is with either same-day pickup or delivery options. Both Target and Walmart have implemented same-day store pickup for shoppers, which has become extremely popular because of the convenience and return policy. In addition to this, both companies have begun to work on a same-day delivery system. Target recently paired with Shipt, which allows consumers to order groceries online and get them delivered the same day. Amazon is widely popular because of its speedy shipping service, making other companies able to compete with Amazon because of this development.
Prime Day, a two-day* sale on Amazon’s site exclusively for Amazon Prime members, was last month. The collection of deals and discounts had many people shopping, but not solely on Amazon. Walmart chose to also host its summer sale at this time but for an extended period, which enabled them to compete with Amazon and potentially bring in non-Amazon Prime member customers.
While these tactics seem to take aim against Amazon, in some cases the competition is using the approach of “If you can’t work against them, work with them.” Those that have connections with Amazon benefit from the amount of business Amazon receives. Target has been in the works of adding third-party sellers to its website, which has been successful for Walmart. Target and Toys “R” Us used to outsource their ecommerce through the Amazon site, which drove a lot of consumers to Amazon; that ended in 2011.
Department store Kohl’s is contributing toward both their own and Amazon’s business. Kohl’s came up with a new policy that Amazon items will be able to be returned at any of their locations. The goal of this is to have more consumers in Kohl’s stores. CNBC wrote, “Its shares surged nearly 10% by afternoon trading on the news.” This business relationship also benefits Amazon because it essentially allows the customer to act as the delivery service; Amazon is able to save money on shipping/delivery fees and have the customers do it themselves. As this relationship continues, it may be likely that other companies start a similar deal.
Amazon’s customer loyalty goes beyond great deals and free shipping; learn about their company and CEO reputation.
* This year was the first year that Prime Day was a two-day event.