The 'Amazon Effect': How Ecommerce Will Change in 2019 and Beyond
The Amazon Effect is real, but it doesn't mean that Amazon is the only ecommerce player that will matter in 2019.
AJ Agrawal, Contributor, Founder of Verma Media, Entrepreneur
January 3, 2019
For better or worse, the U.S. economy and the global economy are in the throes of the “Amazon Effect,” a term used to describe Amazon.com’s success, which has upended retail practice and customer expectations, both online and off. By mid-2018, Amazon was already responsible for roughly 50 percent of the nation’s ecommerce sales and 5 percent of all combined offline and online sales.
What the Amazon Effect Is
So, what is the Amazon Effect? The meaning of the phrase can vary depending on the industry being cited, but it generally refers to the difficulty many stores -- particularly brick-and-mortar outlets -- face when they compete with Amazon. The online retailer's vast selection, fast shipping, free returns, low prices and "Prime" subscription service all serve to create high customer expectations for any retailer hoping to compete.
Does that mean Amazon is obliterating the competition? Studies show that Amazon’s success has led to some business closures, but many companies, in fact, have tackled the Amazon effect creatively and effectively to compete for customers and hold their ground. In short, the Amazon Effect is just another reason the retail environment is always in flux.
Certainly this phenomenon doesn’t affect ecommerce providers solely; however, it's these providers that are most on the front lines and need to stay agile lest their behemoth competitor, Amazon, swipe in and take their customers. With that in mind, here are my predictions for how the ecommerce scene will evolve in 2019:
The “last mile” logistics race will grow more competitive ...
The “mobile-first” switch will finally happen ...
AI and ecommerce will grow even closer ...
The online grocery battle will continue ...
more, including links