Since Amazon entered the European market, they have been seducing consumers with their fast delivery services.
In fact, Amazon Prime was one of the fastest & cheapest delivery system in France.
Having this unique advantage attracted more and more consumers to sign up for Amazon Prime especially for its fast delivery as well as access to streaming: music, TV show, video games.
A strategy that has also been deployed by Alibaba.
Online Payment expansion
As companies become more and more aware of payment solution and its competitive advantage, E-commerce are developing customer solutions to gain more retention.
By gathering all the data from its Amazon Prime users, Amazon launched “Amazon Pay” solutions for e-commerce partners such as Eden Park, Bonobo et Le Coq Sportif.
Once items are added in the cart, the user can select Amazon Pay where their information and payment details are stored.
Amazon Pay on Le Coq Sportif
By doing this, there’s both advantage for the user and retailer. In fact, the retailer gets access to the Amazon Prime user’s data and the user too has the guarantee from Amazon for the products to get delivered.
In fact, an ease of making payment can be a game changer. Merchants often struggle to get customers to finish their purchases as payment can be quite troublesome and many customers drop-out at this stage.
Here, building trust is they key to lead to fast conversion. Strategy that has been applied by Paypal with its 1 click flow order.
Offline payment expansion
Amazon Pay is on its way to conquer the offline market, as payment solution is becoming big in France.
They have been approaching Kiabi (Fashion retailer) to implement offline solution in their stores in France. They have also partnered with a major French food retail chain showing their interest to expand across various industries.
The experimentation has been done in the US with TGI friday where users can order food at a restaurant with amazon.
Looks like Amazon is emulating Alibaba’s strategy in Europe.
Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected]