Amazon remains the most polarizing figure within the retail industry, with merchants viewing the e-Commerce giant as both a friend and a foe. While as many as 65% of retailers that sell on Amazon admit that they moved to the marketplace because it helps them increase revenue, 68% are at least “somewhat worried” that Amazon will use their data to compete against them, according to SLI Systems. While still only a minority, 21% of these sellers say they are “very worried” about how Amazon uses their data.
Nearly half (44%) of retailers presently sell on Amazon, according to the report. These retailers joined for a variety of reasons beyond boosting revenue, including:
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Acquiring new customers (47%);
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Visibility from a high traffic channel (47%);
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The Fulfillment by Amazon (FBA) service (33%);
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Ease of use for their consumers (31%); and
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Infrastructure (25%).
Retailers Expect Continued E-Commerce, Mobile Sales Boosts
Whether these retailers decide to work with Amazon or not, most of them are still driving revenue through their e-Commerce channels. In fact, 86% of respondents expect their Q2 e-Commerce revenue to increase compared to the same quarter in 2016:
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44% expect to see more modest improvements (1-10%);
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29% expect increases of 11-30%; and
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13% forecast their e-Commerce revenue will rise more than 30%.
Most brands express this same optimism when it comes to mobile sales. Up to 81% of retailers surveyed expect revenue from mobile sites and apps to increase during Q2 above last year, with 22% expecting a boost of 21% or more. Only 2% expect revenues from mobile to decrease.
Store Sales Declines Force Retailers To Rethink Investments
As might be expected, the brick-and-mortar outlook is less promising. Only 39% of retailers expect in-store revenues and profits to increase in the quarter, with 14% expecting a decline. Back in Q1 2016, only 5% of respondents expected brick-and-mortar revenues/profits to decline.
Retailers are adapting to this shift to e-Commerce by prioritizing investments such as:
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Customer experience (20%);
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Replatforming (17%);
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Inventory, logistics and fulfillment (11%);
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Content marketing/blog (9%); and
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Personalization (8%).
SLI Systems generated survey findings from 213 global e-Commerce professionals to compile the Q2 2017 E-Commerce Performance Indicators and Confidence Report. Respondents work at organizations spanning dozens of retail sectors. Apparel, which includes fashion, accessories and shoes, was most heavily represented (18%), followed by food and beverage (10%) and housewares/home furnishings (9%).
