Written By Puja Bhardwaj
The global shopping platform, Amazon, has completely revolutionised the shopping experience and taken the customers’ expectations to a new level with its catalogue, great shipping options, same-day delivery, and amazing pricing. The giant brand has become a one-stop shopping destination for people across all age groups.
Recently, the concept of the “Amazon effect” came into the market, which means how Amazon’s business model, supply chain, and shipping abilities have revolutionised retail shopping at both online and offline stores.
This effect is not just how consumers buy. According to the latest McKinsey research, 75% of B2B buyers want to go for digital services and remote human engagement instead of a face-to-face buying experience. This transition should not surprise you, as most customers are millennials today who grew up experiencing seamless services at Amazon. While many business owners and sales professionals are shocked by this shift, they are following the same traditional process and wondering why the results are not coming well.
Let’s get into detail on the “Amazon Effect” – what the Amazon experience has taught people to expect: transparent pricing, instant access to product details and smooth processing for payment and delivery. Gartner states that around 17% of B2B buyers spend time meeting with potential suppliers for a purchase. This is a notable decline in people’s approach over the years. Buyers have no patience for traditional sales.
- Transparent Process: In B2B buying, visibility is crucial as customers have a complex bill of materials. As per Futurum Research, during the discovery stage, around 90% of people said they want to go for product trials before purchase. Before making the final decision, people prefer getting a clear understanding of the solution and want to experience its functions in a hands-on, real-world way.
- Faster, Simple Process: At Amazon, the B2B buyers are motivated by the ease and pace of B2C shopping. Time and resource efficiency are major reasons why people want to buy online. An additional factor is the convenience that platforms like Amazon provide. Overall, brands are moving away from offline buying models for a faster and simpler process. From a B2B perspective, online buying presents a perfect solution to take care of this growing demand and also offer businesses the tools they need.
- Digital-like Engagement: As Amazon presents all the information to a few clients from comprehensive product information, they expect the same in offline purchases. While B2B salespeople strive to provide buyers with detailed information before the first customer interaction. Many reports have already stated that half of B2B buyers prefer to research on their own on different platforms before engaging with sales representatives.
- Multiple Communication Approach: Most of the younger buyers were beginning their purchasing journey through communication methods like text or email. Here, it is not about writing text; it is about writing a good text. B2B employees and business owners should be competent in the major video tech, such as Zoom and Teams, and be able to hop on a video call at a moment’s notice. As Amazon has brought everything as per buyers’ preferences, users today prefer speaking by video, even when they are just a ten-minute drive away.
- Value Addition: When a buyer interacts with a salesperson or someone in a retail store, he or she expects every interaction to be a value addition. The traditional “checking in” calls are not in function anymore. Instead, today’s buyers have become aware and knowledgeable; they have insights, market reports, and solutions to specific challenges. So the focus should be on adding value in return for the buyer’s time.
Wrapping Up…
The Amazon Effect has completely shifted the B2B buying. The company is continuously planning, assessing new opportunities, and establishing itself as a pioneer. Professionals and businesses should focus on adapting these new expectations to ensure their growth.
Frequently Asked Questions
What is the Amazon Effect in business?
The Amazon Effect refers to the way customer habits have changed in the way people buy, with Amazon’s presence. It also represents the way e-commerce, as a whole, has evolved to streamline the buying process.
Is Amazon in B2B or B2C?
Amazon is a perfect example of a business-to-consumer (B2C) e-commerce business where consumers can browse products, read reviews, and place orders on a company’s website.
