In today’s digital-focused world, many consumers are choosing to shop online from the comfort of their home rather than head out to brick-and-mortar stores. Because of the increasing popularity of online shopping, many retail experts are wondering if online marketplaces like Amazon will soon wipe-out physical shops. But it looks like both online marketplaces and brick-and-mortar stores are making adjustments to keep up with the competition.
For starters, Amazon is no longer just online. That’s right — the largest online retailer has started building a physical presence. The online marketplace has recently partnered with Best Buy, which will allow Amazon to have a broad distribution of their Fire TV and Best Buy will get to finally sell products on Amazon’s online platform. With major companies going bankrupt from online stores like Amazon, this partnership may be the answer to keeping Best Buy afloat.
Because there are some consumers who haven’t adapted to the online shopping world yet, Amazon has made changes to attract even more customers. One of the most recent changes is experimenting with drone deliveries. With the FAA predicting that there will be about seven million drones in the country by 2020, there has been a huge movement in companies exploring uses of drones. By being able to offer even quicker and more convenient deliveries of online purchases, stores that utilize drones hope to gain a larger consumer base.
It’s no secret that consumers want a fast, convenient shopping experiment — which is why so many people have turned to the online world. But there are still issues with online marketplaces. Lack of knowledge, easy access, and trust are all problems still being faced by online stores. In fact, a recent study showed that 96% of consumers agree that the design of a site is the main reason they trust the company, rather than the content. Consumer wants and needs can be harder to read for online stores, which is why they’re trying to make the process even easier.
But while online stores like Amazon are making vast changes, brick-and-mortar stores are doing the same. Technology is a major factor in attracting and keeping the attention of consumers, which is why more stores are utilizing interactive display technology. In investing in this type of technology, physical stores can still give customers an immersive marketing experience with personalized messaging. Attracting consumers’ attention with displays is crucial, especially seeing as how 35% of consumers become aware of a local business when they see its signage.
Along with interactive displays, stores are changing the way their stores are stocked, the payment options and processes they offer, and even how they capture and store their customer data. While it is true many major stores have been driven out of business due to online competitors, it looks like we’re a long ways away from online marketplaces ruling the shopping world.
So while stores like Amazon are making changes to drive more consumers to online shopping, brick-and-mortar stores are avoiding bankruptcy by integrating technology and making consumer-driven choices to stay afloat.