Amazon making inroads in sales of ‘e-commerce immune’ items
Shoppers are increasingly turning to Amazon for purchasing bulky goods that traditionally haven’t sold all that well online.
According to research from One Click Retail, Americans are increasingly turning to the online giant to buy tools and home improvement, outdoor & sporting goods, and home appliances. In the tools and home improvement category, Amazon had an overall growth rate in 2016 of 35% over the previous year, compared to the U.S. domestic market's total growth of 6%. Sales of woodworking items rose 30%, while sales of garage storage products rose 35%.
“Though often seen as an Amazon-proof industry, the old-fashioned American hardware store is not untouchable," said Nathan Rigby, VP, One Click Retail, which specializes in eCommerce data measurement, sales analytics and search optimization for brand manufacturers. "Amazon has all the same advantages in the tools & home improvement sector that it has in grocery, beauty products and health care — and we've seen plenty of evidence of those industries feeling the Amazon Effect. As more uber-connected millennials enter home ownership, Amazon's share of this product group, like many others, will continue to grow at a disruptive rate."
In the outdoor and sporting goods category, Amazon's 20% year-over-year growth in 2016 was four times the rate of the overall market, according to One Click Retail.
"Amazon understands that it's the consumer driving the company's success," added Rigby. "The ways they are innovating new services and offerings, they are doing so with one thing in mind: is this what the consumer wants? Amazon isn't just selling you the bike, they're selling you the service to professionally assemble it and deliver it to your door. It's no surprise that Amazon bike sales increase 50%."
Survey: Don’t ignore online customers post-purchase
What happens after an order is placed is crucial in driving website traffic and revenue.
That’s according to a new study, “Pathways to Loyalty and Post-Purchase Success,” from WBR Digital and Narvar, which reveals that engaging online customers appropriately during the post-purchase phase of their journey is key to building meaningful relationships fundamental to a brand’s success. Ninety percent of the retailers polled in the survey agree that engaging customers after they make a purchase drives new site traffic and revenue.
“The period of anticipation between when a consumer buys a product and when it arrives on her doorstep is the new moment of truth in retail,” said Amit Sharma, founder & CEO of Narvar. “This is a critical opportunity for retailers to continue the conversation and drive retention. As we see in the survey findings, retailers now recognize the value of optimizing the post-purchase experience to not only reduce call center costs and generate incremental revenue, but also to nurture the consumer relationship and build trust for future transactions.”
Key findings from the survey include:
• Eighty-seven percent of retailers agree that providing customers with proactive information about their orders decreases call center volume.
• Retailers identify price, internal resources, and availability as their biggest obstacles to moving forward with post-purchase initiatives.
• Among initiatives studied in the report, recommending new, related products brings the highest value for 40% of retailers.
The findings suggest that in order to overcome major internal challenges to post-purchase strategy adoption, advocates must convince their leadership that the programs will create value — not only for the sake of the customer, or for the sake of customer retention, but for the sake of the bottom line as well.
Report: Albertsons’ division eyes home delivery
Jewel-Osco shoppers soon will be able to order groceries directly from their go-to supermarket.
By the end of the summer, Jewel-Osco, a division of Albertsons, will offer online ordering. The chain will begin rolling out its e-commerce offering early this summer, according to The Chicago Sun Times.
This is not the supermarket chain’s first foray into online ordering. The chain supplied merchandise for online grocer Peapod for a decade in the 1990s. The partnership ended when the delivery company began sourcing from wholesalers 17 years ago, the report said.
Currently, the chain currently has an agreement with Instacart, a grocery delivery service that tasks personal shoppers with picking and delivering groceries from local stores. The grocer did reveal the ongoing role of Instacart.
While the grocer also didn’t share specifics on how its new e-commerce program would work, Albertsons may have given a hint. Jewel-Osco’s parent company recently announced that a click-and-collect program is in the works at five of its banners, including Jewel-Osco. This program will be using MyWebGrocer’s solutions to ramp up the launch of their buy-online-pickup-in-store (BOPIS) and delivery options.
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