In its three decades in business, Amazon has changed customer expectations about just about every aspect of the retail experience. This includes how consumers navigate websites, expected shipping times, ease of purchase, and more.
For instance, before 2005, three or more days was quite common when ordering online. Then, Amazon launched Prime’s two-day delivery service, forcing other retailers to adapt to this new timeline because their customers expect the same level of service.
This phenomenon is often described as “The Amazon Effect,” and no retailer is exempt.
"All retailers are having to compete with Amazon. Many retailers think that that's not possible, but it definitely is," says Emily Felix, Director of Stores at Belk department stores. "It just really is gonna be about being creative and trying to think outside the box of how they can compete with them."
That creativity is required to match the convenience and personalization that Amazon is known for, all while differentiating your own brand and cultivating long-term customer loyalty.
It's a delicate balance, but several forward-thinking retailers shared three ways they’re achieving it.
Let’s hear what they have to say.
Online ordering as a percentage of overall retail sales has been on a steady increase over the last few years topping out at 15.9% in Q1 2024, nearly reaching the record set by the 2020 pandemic.
While in-store shopping still dominates, accounting for around 84-85% of total retail purchases, ignoring your digital experience loses the advantage that brick-and-mortar retailers have over Amazon in most sectors: the ability to order how and when you want.
Brands looking to stand out should prioritize creating a seamless, user-friendly digital experience. This requires more than simply having a platform.
Brittany Pacheco, Senior Omni Channel Manager at Office Depot, emphasizes the importance of continually improving their e-commerce platform.
"The continual focus around the e-commerce experience is important. We're constantly working here at Office Depot to improve our online experience, “Brittany said , “because the shift is, you know, customers moving away from brick and mortar to using a digital platform more."
Providing a digital experience that rivals their previous in-person buying experiences makes it far more likely to retain customers, even as their purchasing preferences evolve.
"We have a lot of loyal customers who would rather order from Belk and get it, I mean, a couple of days later,” Emily from Belk told us “Rather than order it from Amazon from a random manufacturer that they've never heard of before."
Salon Service Group, a wholesale distributor for owners of hair salons, has similarly placed a heavy emphasis on enhancing its e-commerce capabilities — not to compete with Amazon but instead to make for a tailored experience for their particular niche.
"There is a shift that has happened with our industry," explains Liz Cain, Director of Stores at Salon Service Group. “[focusing on our ecommerce experience] shifts the way that we are partnering with our customers to allow for better ease, better partnership, and a streamlined experience when it comes to placing their orders.”
Salon Service Group only provides its services to licensed salon owners and their shops. In many cases, they’re ordering products for immediate needs.
"Our customers expect the delivery to get to them by the end of business that day,” Liz told us, “We have a window for same day delivery that allows us to ensure if there is any sort of issue, our customers can call us and we can work through it so they can get their products on the current day."
They incorporated last-mile orchestration to support this level of urgency and avoided selling to unlicensed cosmetologists.
"We have to ensure that our customer is licensed to maintain the integrity of our business,” and Delivery Solutions has allowed us to do that alongside same-day delivery, which is really unique."
Had Salon Service Group instead emulated Amazon's mass-market approach, it’s possible they could have lost customers who prefer a specialized e-commerce experience tailored specifically for them.
“The beautiful thing about Office Depot, we've been around for 30 plus years,” Brittany said in a similar note, “We know exactly who we are. We know exactly who our customers are. We know exactly how they shop with us."
For nearly all retailers, competing directly with Amazon’s resources is a lot like trying to play Texas Hold’em with Bill Gates in a game that allows for unlimited buy-ins.
It’s a matter of when not if you’ll run out of funds.
This is where having a clear plan and product roadmap is imperative to long-term, sustainable growth. "Even if you have less resources and less money and a super solid roadmap,” Brittany from Office Depot said, “You're still able to provide those same enhancements or features and business results."
Emily Felix of Belk echoes this sentiment, noting that a clear, data-driven strategy focused on moving quickly. "Even if you have less resources and less money and a super solid roadmap, you're still able to provide those same enhancements or features and business results," she explains.
Beware of one thing though: trying to incorporate every single feature Amazon releases is a surefire way to drive your bottom line into the red. Instead, it’s important to understand which features are most important to your customers.
The best way to accomplish this is to simply ask them. Engage with your customers through whatever avenues seem fitting, whether that’s anonymous surveys or talking with individual customers during on-site visits.
This feedback-driven approach allows retailers to continuously improve the digital experience instead of simply chasing the latest trends or Amazon's latest release.
These retailers who are thriving in the age of Amazon have one thing in common - a steadfast focus on delivering exceptional customer experiences, not just trying to match Amazon's every move.
As Emily, Brittany, and Liz all demonstrated, the key lies in understanding your unique customer base.
Their brands haven't let Amazon's vast resources and extensive product offering dictate their internal strategies.
Instead, they’re focusing on putting the customer at the heart of their efforts—and that’s making all the difference.