Are more traditional retailers and brands shifting toward Amazon?
It's fascinating to see a growing number of retailers and brands joining Amazon to boost their sales. By offering their products on the platform, they’re tapping into a huge customer base and taking advantage of Amazon's reach.
For example, Nike, after pulling its products from Amazon back in 2019, has now made a comeback. This move aligns with Nike’s updated strategy to grow online sales and meet consumers where they often begin their shopping journey—on Amazon. Another example is Wilko, which has launched its own storefront on Amazon as part of their digital expansion efforts.
Despite efforts to adapt, traditional retailers face a range of challenges when trying to compete or coexist with Amazon:
Higher operating costs: Physical stores come with added costs like staff, inventory, and maintenance, which Amazon largely avoids.
Supply chain challenges: Amazon’s highly optimised supply chain and fulfilment system set a high bar, making it hard for traditional retailers to keep pace.
Digital transformation struggles: Many retailers are still working to upgrade their tech and data systems, which can slow down their ability to compete online.
Changing consumer habits: With more people favouring online shopping, traditional retailers need to rethink how they engage with their customers.
That’s why so many traditional retailers are starting to lean into digital transformation, and for many of them, Amazon is becoming a key part of that shift. In some cases, it’s not just a part of the plan—it’s a major pillar of their overall strategy.
These retailers are beginning to realise they need to be flexible and stay in tune with shifting consumer preferences. To stay competitive, they must invest in better technology, improve the customer experience, and step up their fulfilment capabilities.
Amazon has completely reshaped the retail landscape. It’s raised the bar on customer expectations, sparked a wave of digital innovation, and forced traditional retailers to either adapt or fall behind. But this also opens up new opportunities for retailers willing to embrace change and focus on meeting customer needs in a digital world.
