The Amazon Effect - US - December 2018
Amazon is the world’s second largest retailer behind Walmart, with $120 billion in US sales in 2017, up 71% in two years’ time. This one company accounts for approximately 40% of total US ecommerce sales. Its membership program, Amazon Prime, surpassed the 100 million member mark globally this year, and is viewed as the gold standard of membership programs. On top of that, more than four in 10 adults say that Amazon has redefined what convenience means from a shopping perspective and more than a quarter have higher expectations of other retailers now as a result. One third of consumers say Amazon is their favorite place to shop, and a fifth couldn’t live without it. Amazon offers a simple proposition that consumers want and are willing to pay for in the case of Prime: convenience, low prices, vast product selection, and fast delivery. Not only does it deliver on this value proposition repeatedly, earning high levels of customer satisfaction and trust, but it also continues to redefine convenience as it unapologetically forays into new territory. That is the “Amazon effect.”
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