4 Key Drivers of Amazon’s Future and What Brands Need to Know

For more than two decades, Amazon has been disrupting a variety of industries. Today, it’s the largest e-commerce company in the world and makes headlines daily. The marketplace giant actively prepares to tackle whatever the consumer demands next. But, how will this shape the future of the company, its shoppers, and the brands who sell on its platform? Continue reading to learn more about the key drivers of Amazon’s future.

Machine-Learning Will Evolve and Become Dominant

Machine-learning, according to Expert System, uses artificial intelligence (AI) to allow systems to learn, improve, and develop without being programmed by a human. When it comes to e-commerce, more than 80% of interactions will be handled by AI before 2020. 

With that, machine-learning will likely make its way to the forefront of brand strategy. The development of AI and machine learning can help improve things like customer experience and customer service, search results and retargeting, and more. Brands will need to be ready to learn the nuances of updated technology as Amazon’s future involves more machine-learning. 

Last-Mile Delivery: What is it and what can we expect? 

Last-mile delivery simply refers to the last step within a product’s journey to a customer’s home. (often appearing as ‘out for delivery’ when tracking a package.) A package can make many stops between when it’s marked as ‘out for delivery’ and reaching its destination. Currently, the last-mile delivery system has the potential to become more efficient by cutting costs and delivering packages quicker. 

Amazon's future
Amazon’s Future

Recently, Amazon has increased its focus on logistics and delivery. One-day shipping has become Amazon’s next phase to meet customer expectations. So, a last-mile delivery solution is needed not only to cut costs and inefficiencies but meet the standards set by Amazon.

The Grocery Category Competition Will Get Even More Intense 

The past several years have been pivotal for the grocery market and Amazon lent its hand in influencing its direction. A recent report states 30% of families in the United States shop for groceries online. 

Although Amazon has a stronghold of this market, there is still room for a leader in e-commerce to claim the grocery category. The competition will increase and bring bold strategic moves from Amazon and its competitors. Brands need to be ready to adapt their own strategies to be agile and thrive in what develops.

Mobile Matters Now and Will More than Ever 

Since smartphones became an integral part of daily life, the mobile experience has been a key component of brands’ strategies. As the e-commerce industry continues to grow, mobile is becoming unavoidable. In fact, during the 2018 holiday season, an estimated 68% of e-commerce traffic was driven through a mobile device. 

Amazon’s mobile app has a loyal fan-base, but about 58% of smartphone users visit the marketplace via Amazon.com instead. A study declared the difference between Amazon’s app and mobile usage was the amount of time consumers spend on each platform. Brands will need to place a priority on ensuring content is digestible and optimized to convert when displayed on mobile devices through the Amazon app, as well as through mobile browsers.

We look forward to Amazon’s future and what’s to come for the brands who sell on its platform. If your brand could use a strategic partner or resource for all things Amazon, schedule a free consultation. In the meantime, if you have any questions, let us know. We’re here to help. 

Schedule a Free Consultation
Hannah West

Hannah West