Retail

Retailers Find New Innovation Fuel Against Amazon

online shopping

Here’s some news: Amazon is not unbeatable.

No, that doesn’t mean that PYMNTS takes sides in the struggle for retail supremacy, but only that we like to note when someone or some organization mounts a challenge to the eCommerce and logistical behemoth.

In this case of retail innovation, that comes down to a former Snap executive taking on Amazon with the launch of a new eCommerce platform.

Imran Khan, who spent three years at Snap as chief strategy officer, has created a new retail company, Verishop, which aims to “bring joy back to online shopping, and do it at scale with the ease of online purchasing and fast delivery we’ve all come to expect.” Well, Verishop has officially launched, providing new evidence for how to take on Amazon.

High-End Retail

According to a report from CNBC, “in many ways, Verishop aims to be a high-end and online version of a department store. And that’s at a time when traditional department store chains’ bricks-and-mortar stores are struggling.” Not only that, but “Verishop is launching with roughly 150 brands — and growing — already signed on.” As well, “Verishop also offers free, two-day shipping with no minimum purchase, free returns and a 24/7 customer-service portal on the web.”

The urge to stand out from Amazon in this increasingly online retail world is certainly not limited to Verishop.

As PYMNTS has recently covered, Brazilian retailer Magazine Luiza has announced it will be selling books online, which could be picked up in one of its almost 1,000 stores — a charge on Amazon’s core and initial competency. The company is aiming to compete directly with Amazon, which launched its online Brazilian operations in 2012. After two of the country’s biggest booksellers — Saraiva Livreiros SA and Livraria Cultura — filed for bankruptcy protection last year, Magazine Luiza saw room in the market.

Earlier this year, it was revealed that Amazon was getting ready to launch the fulfillment and delivery network it has been working on in Brazil, which was delayed because of logistics and a complex tax system. However, it now plans to directly sell merchandise in 11 categories from more than 800 suppliers, including L’Oréal and Black & Decker.

The battle for Amazon retail supremacy also involves pets.

Amazon is gaining a bigger share of consumers’ overall retail spending, as documented by PYMNTS research. According to the newspaper report, Amazon “has an advantage because it can bundle a range of products in the same shipment to offset the high cost of shipping heavy bags of dog food or cat litter. The company generated about $3.3 billion in pet products sales in 2018, a more than 30 percent increase over the previous year, according to estimates by Packaged Facts, a market research firm.”

Retail Challenge

The challenge, of course, is significant.

Those are also the segments in which Amazon is growing market share inside its marketplace, where Amazon Pay could offer merchants an additional payments tender, as well as a built-in customer base. For the latest and greatest on those share shifts, check out our Amazon/Walmart Whole Paycheck Index.

But other retailers are striving to step up.

For instance, Walmart is making the latest entry into the grocery delivery wars — now an active battleground between Walmart, Amazon and Target for who can get the groceries to consumers door, fastest and for the least money. Walmart’s latest offering is “Delivery Unlimited” subscription, which will offer consumers the option of either paying $12.95 per month plan or a $98 per year for a subscription that will let them shop online and have their groceries delivered as often as they like.

Amazon has a prime position retail position but as recent developments show, rivals keep coming at it.

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Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 AML/KYC Report, Zillow’s Justin Farris tells PYMNTS how the platform incorporates stringent authentication without making the onboarding and buying experiences too complex.

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