Romeo and Juliet.
A classic battle between two families. The Capulets + Montagues. Now, here we are, 430 years later. Facing a new war with much love lost. Except, now it’s two new families…
Bezos + Walton.
As we leave Valentine’s Day behind, here’s a little history for you.
Amazon was founded in 1994. Bezos started the company to sell books, but don’t let that small start fool you. Jeff had an early vision for explosive growth and eCommerce domination.1
He was late.
Sam Walton had already been in business for 32 years by the time Amazon was born.2 And, as Amazon was still being built, Walmart Supercenters were rolling out—their numbers doubling that very same year.3
So, while Walmart reigns supreme right now… what happens when everything goes online?
A mass-market disruption.
It’s happening right before our eyes.
The pandemic pushed the digital age forward by at least 10 years, forcing the hands of consumer-focused firms. Every brand had to innovate—and quickly. Many didn’t survive.4 But, Walmart acted fast.
On September 15th, 2020 the giant released Walmart+. Their launch was timely. The company had just seen online sales soar 74% in Q2.5 Clearly, they had taken aim at Amazon.
Amazon is fighting back.
Enter Amazon Fresh.
A grocery delivery service available to Prime members in select cities.6 Customers can choose from thousands of items in a two-hour delivery window; free with a minimum purchase of $35.
People love it—95% of our panel said they’d buy from Amazon Fresh with no delivery charge.
After all, 85% spend $20+ on Amazon each month. And, 41% already order groceries from Amazon. That’s nearly half. It’s a brilliant move by the eCommerce emperor. Meet consumers on a platform they’re comfortable with—and Prime them for grocery shopping 😉
It’s about time.
Amazon Fresh saves time.
And that’s what Amazon is banking on. Even Alexa’s in on the scheme. See, if you own an Alexa, she can now remember your grocery order. An excellent time-saver. But—more importantly, it’s a quick cart size increase. Amazon is adding to their sales and enforcing their brand loyalty, in a single step.
So, who plans to use it?
We asked…89% are at least slightly likely to sign up for or try ordering on Amazon Fresh. Not only that, but 32% of Alexa owners are extremely likely to use her help for Amazon Fresh orders.
We’re witnessing a revolution.
Amazon’s not letting up.
Far from it. They’re going toe-to-toe with Walmart…in-store. Amazon Fresh now has 9 stores nationwide and it’s a very exciting shopping experience for consumers.
Let’s talk about why.
To start with, there’s a free Prime pickup and return option in-store, which 69% are likely to use. While shopping, customers can also munch on freshly made items at the Amazon Fresh Kitchens. We asked buyers about it, and they’re interested—98% are at least slightly likely to order food.
Plus, 89% are likely to sign up for—or use, Amazon Prime Rewards. Why? They can earn 5% back.8 Saving money is always good, especially in a down economy. Nice move, Amazon.
Wait, there’s more.
You can skip the checkout line. Yup. With an Amazon Dash Cart. Here’s how it works. All items have Amazon reviews at-aisle. Pick up the product you want. Read about what people think. Decide you like it too. Put it in your cart. Then, sign in to Amazon. Your item is identified and paid for as you walk through a Dash Cart lane.
Wow.
What’s next?
Well, 43% say the Amazon Dash cart sounds great, easy, and helpful.
And 82% are somewhat comfortable with very limited in-store human interaction. That may sound surprising, given that 48% of grocery stores didn’t offer online shopping in 2019.9
But, that’s what a pandemic will do to you.
Consumers have gotten comfortable online.10 Which our research reaffirmed, as 71% said they’re more likely to use Amazon Fresh online than in-store.
What can you do about it?
Keep tabs on consumers.
Now’s the time to know exactly what your consumers need.
Let’s face it. No one has the time, or the budget, to make mistakes right now. Because in the last year, we’ve seen a monumental shift in consumers. You can’t afford to skip out on research. You need it.
And, that’s not going to change. In fact, many of the habits your consumers have created are still in flux. You’ll want to track them. This is your time. Find out exactly what your customers want. Then, be the brand that saves the day. Give them everything they’re looking for….before someone else does.
References:
- https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4
- https://corporate.walmart.com/about/history
- https://media.corporate-ir.net/media_files/irol/11/112761/ARs/1994AR.pdf
- https://en.wikipedia.org/wiki/Category:Companies_that_filed_for_Chapter_11_bankruptcy_in_2020
- https://mfour.com/blog/walmart-is-stealing-from-amazon-and-its-working/
- https://www.investopedia.com/personal-finance/8-lesser-known-benefits-amazon-prime/
- https://www.amazon.com/fmc/m/20190651?almBrandId=QW1hem9uIEZyZXNo
- https://www.amazon.com/gp/help/customer/display.html?nodeId=GHJG8KU6QURQMMUU#:~:text=The%20Amazon%20Prime%20Rewards%20Visa,with%20an%20eligible%20Prime%20membership.
- https://www.statista.com/topics/1915/us-consumers-online-grocery-shopping/
- https://mfour.com/report/consumer-spending-73-now-buying-on-apps/
