Why Is Amazon So Important For E-Commerce Retailers?

Retail e-commerce sales in the United States amounted to 80.451 billion dollars in the first quarter of 2015 and 83.863 billion dollars in the second quarter of 2015 (U. S. Department of Commerce 1-4). In 2017, the total e-commerce retail sales are expected to reach 440.4 billion dollars (Statista par. 1). The market for the instant re-order solution such as Amazon's Dash Button is not new, and the current e-commerce sales volume illustrates the opportunity available. The important thing needed is for retailers to differentiate their offers such that they become preferred choices for their customers. Being convenient to the customer and being instrumental in influencing the customer decision-making process about the capacity to delivery will be a key differentiating factor for retailers. Amazon is achieving this objective by presenting solutions that seem far-fetched, but also expand the consumer thinking to view the retailer as innovative and serious about its tagline of "being the largest retailer". Nevertheless, the success of its Dash Button depends on …show more content…
No other retailer has set up a rival product. All other e-commerce retailers will attempt to serve the market in future when consumers change their behavior in shopping. Offline retailers may also adopt the innovation. The advantages the competitors have are the reduced need for customer research as the incumbent service provider will have absorbed most of the cost. They will just be copying a solution already existing. Their disadvantage is their late arrival to the lucrative market, which limits their ability to get customers as the incumbent can make switching costs very high. Currently, Amazon enjoys complete market share for the Dash Button since there is no rival product. Overall, the e-commerce sales for all retailers have been growing as the market continues to expand in size at a steady