Marketing Report: Amazon's Influence and US Retail Market Trends

This report analyzes Amazon's significant influence on the US retail market, highlighting its substantial share in both overall retail and e-commerce sales. The report identifies consumer electronics as a major product category and discusses how Amazon's lower overhead costs and appeal to third-party sellers have disrupted traditional retail models. It examines key trends in the US retail market, including the rise of e-commerce, evolving consumer preferences, and the emergence of new competitors. The report references several sources to support its findings, emphasizing the dynamic and competitive nature of the US retail landscape and the need for retailers to adapt to changing market conditions. It concludes by underscoring the rapid pace of innovation and disruption within the industry, with Amazon and other digital disruptors playing a major role.

Marketing

Marketing 1
Amazon is liable for 4% of US retail sales along with 44% of US e-commerce sales. The
consumer electronics were identified to be major product class in 2017 for the company. The
company has disrupted the traditional retail and hastened decease of the struggling players.
The overhead costs of Amazon are significantly lower than other retailers which offer
company an edge to destabilize the prices and operate on the least profit margins. More
buyers are enabling Amazon to appeal 3rd party sellers. 3rd party dealings are considered more
cost-effective therefore the compny has attained initiative to make procedure seamless for the
persons selling on the platform. The company is making use of fast impending a tipping point
where more individuals will be disbursing money online with the company than other
retailers in the US (Hortaçsu and Syverson, 2015).
The retail market is continued to evolve quickly. The advancement in the digital channels has
been favorable to the retail market in US. The retailers in the US market are required to adapt
to the new shifts taking place in demographics, attitudes and customer preferences. The retail
market is emerged by the technologies which vary the way customers interact with their
preferred brands, shift in the preferences along with the occurrence of new battles lines in e-
commerce (Vida, 2015). The trends influencing the retail market in US are glass box and
brand as a ethos, making e-commerce delivery sooner, growth of experiential retail, increase
of subscription e-commerce and multi-channel as a new usual.
The newcomers compete against different established brands in the US retail industry. It
necessitates a lot of branding, PR, and marketing to the companies. The US retail market is
the biggest retail market but is equally competitive. Amazon and concerned digital disruptors
have a massive share in the US retail industry. Several brands are coming to the retail game
and going directly to the customers. The industry is experiencing disruption and innovation at
an exceptional speed. It has resulted in rise of US retail sales as $3.53 trillion in 2017. It was
an increase of 3.9% from the year 2016 (McKinsey & Company, 2019).

Marketing 2
(Tech Crunch, 2018)

Marketing 3
References
Hortaçsu, A. and Syverson, C., 2015. The ongoing evolution of US retail: A format tug-of-
war. Journal of Economic Perspectives, 29(4), pp.89-112.
McKinsey & Company, 2019. Winning in an era of unprecedented disruption: A perspective
on US retail. Available from
https://www.mckinsey.com/industries/retail/our-insights/winning-in-an-era-of-
unprecedented-disruption-a-perspective-on-us-retail [Accessed on 2/10/2019]
Tech Crunch, 2018. Amazon’s share of the US e-commerce market is now 49%, or 5% of all
retail spend. Available from https://techcrunch.com/2018/07/13/amazons-share-of-the-us-e-
commerce-market-is-now-49-or-5-of-all-retail-spend/ [Accessed on 2/10/2019]
Vida, I., 2015. Retail Expansion into International Markets: The Case of United States Retail
Chains. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual
Conference (pp. 502-503). Springer, Cham.