Filled with a decade of change, big things are happening for e-commerce. We’ve seen the economy send the brunt of an epidemic – effectively shaping how people shop and for the good of their preferences.
Amazon’s growth peaked in 2020. Compared to Q3 in 2019, Amazon’s net revenue increased 200% by Q3 this year. The shift to online shopping has made Amazon a key player in the e-commerce game.
So what’s next for the store?
There may be a permanent switch to online shopping after the pandemic
We will see a steady increase in Amazon subscribers and prime subscriptions as the pandemic continues to shape our day-to-day life and will continue to do so. Before COVID-19, only 12% of retail sales were online, so there has been a significant reversal in e-commerce. According to my company’s research, during the epidemic, 70 U.S. consumers shopped on Amazon in Q3, and 48% said they would recover if they never shopped at a physical store again.
Social proof can eliminate brand preference
Social proof is minimizing the impact of a brand; the field is equal to product reviews. The best-reviewed products are more appealing to consumers than specific brands, which means smaller brands can appear on Amazon and compete by squashing the idea of traditional brand loyalty.
Selling on Amazon can be a popular career path
It is anticipated that there will be more interest in online programs for e-commerce than the traditional university experience. Covid-19 is also a big factor. Undergraduate enrollment dropped nearly five-fold in 2020 before the epidemic in 2019. Personally, fewer classes, the desire for affordable education, and the curiosity to learn online may motivate some students to sell on Amazon as a career.
Amazon can experiment with cryptocurrency
Which e-commerce platform will accept cryptocurrency? Earlier, Amazon distanced itself from cryptocurrency due to fears of instability and expansion. It is predicted that Amazon will pull a page out of PayPal’s book and heat up to cryptocurrency as a form of payment. Amazon owns a handful of cryptocurrency domains, and Jeff Bezos supports African Startup Chopper Cash, which currently allows Nigeria to buy and sell cryptocurrencies and partial stocks.
Brands can instantly adapt to Amazon Post
AmazonAgency publications are intended to offer a “social media fi” product. Brands can customize their product feed to entice buyers and capture sales by scrolling, like Instagram and Facebook. The post will likely increase in other markets outside the United States and offer likes, reactions, and comments as another form of social proof.
Amazon’s grocery offerings can be refreshing
With an increasing demand for essential products and convenience, Amazon can expand its grocery options to retain Wal-Mart + and Wal-Mart’s brick-and-mortar stores. To further compete in the grocery store, Amazon will need to redesign its Amazon Free Delivery program and open Amazon Go Concepts, currently only in Seattle, Chicago, New York City, and San Francisco.
Walmart can put Amazon on its feet
Walmart+ will put pressure on modernization to innovate and provide customers with unique services. Currently, 142.5 million US users are Amazon Prime members, but if the holidays alone are an indication, the competition is intensifying. Although Amazon has so far reported its most successful holiday season, my company has found that WalMart.com sales are up 124% in the Q42020 quarter.
One-day shipping may be more common
Although Amazon offers a few days shipping with selected items and limits a minimum of $35 for Prime members and of $2.99 delivery fee for non-Prime members in selected areas, consumers are increasingly Expect shipping from. COVID-19 sets an example of easier delivery and curbside options. The next day and two days of free shipping on Wal-Mart + without the minimum price and one-hour delivery to grocery windows may entice Amazon to take a more aggressive approach today shipping.
More Amazon Tech can be incorporated into everyday life
Consumers may be more comfortable with Amazon technologies for everyday tasks, such as adding items to their shopping cart with Alexa. Smart accessories will also become popular, such as Alex Glass or Amazon’s new Health and Fitness Hello. There will be more interaction with virtual showrooms and the growing reality of online shopping. As the concept of the product becomes more realistic, consumers are more likely to purchase.
Amazon drones may be used over and over
Home security is also an area of drone innovation. Home Cam, an indoor drone that monitors your home, launches for the first time next year. This product is likely to have a lot of competition in the security space.
China can dominate Amazon’s playing field
Given the 2020 trends, China may continue to increase its third-party seller share and products on Amazon. It is most likely that they shall continue being the “common denominator” behind national sellers in the Amazon marketplace. It would be fruitful to learn how 2021 raised Amazon. Learning from change is how you get better, and 2020 provides a lot of opportunities.
Amazon posts will become an important marketing tool
Amazon Posts, currently in beta enable sellers to offer curated images on Amazon’s shopping feeds, such as the Amazon app and mobile web. These images link directly to product pages, increasing traffic and brand awareness. The best part? It’s free to use.
Amazon is trying to get a new focus on browsing instead of just capturing online shopping traffic. Posts will also showcase brands from social media platforms such as Facebook and Instagram in shoppers’ feeds, making them an ideal source of organic traffic.Currently, posts include a profile banner, a custom image, product icon, text, and category tags. If you are a seller registered in the Amazon Brand Registry and have a store in the United States, you may participate in the beta.
Amazon will continue to dominate e-commerce
Amazon is expected to dominate the e-commerce space for years to come. As an e-commerce pioneer and innovator, it has become difficult for other brands to gain a foothold in the market. Still, some changes are taking place on the horizon. Big brand competitors such as Walmart and Home Depot are trying to develop their e-commerce strategies, and it is not clear which disruptive new brands are waiting for their moment. If you run an FBA business, keep an eye on Amazon’s competitors as well. If you run an FBA business, keep an eye on Amazon’s competitors as well.For more details feel free to visit www.olifantdigital.com