How B-to-B and B-to-C Brands Differ on Their View of Amazon
Amazon.com has had a major influence on the retail industry and how brands have had to react to the online leader, from the cost and speed of shipping to technology spend. In Total Retail’s survey and report, The Amazon Effect: How Retailers Are Adapting Their Businesses to Better Compete With the Industry Leader, respondents shared how their companies are preparing to fight in the age of Amazon.
As part of our research, we segmented respondents from B-to-B companies and B-to-C companies to see the similarities and differences between their answers. The chart below shows how B-to-B and B-to-C companies differ on their view of Amazon.
More B-to-C than B-to-B businesses believe that Amazon is a direct competitor. Almost half (46 percent) of B-to-C respondents say that Amazon is a direct competitor, compared to 32 percent of B-to-B businesses and 30 percent of retailers that listed their primary customers as a mix of consumers and businesses.
Many big-box, B-to-C retailers with nationwide brick-and-mortar store networks are making these feelings known by waging war with Amazon on everything from product pricing to delivery speed to fulfillment options. For example, Wal-Mart has lowered its free, two-day shipping minimum order value and is testing a pickup grocery kiosk.
Fewer B-to-B retailers are feeling the competitive pressure of Amazon. However, as Amazon enters more verticals (which it will), B-to-B companies will likely have to fight harder to maintain and grow market share.
Our coverage of The Amazon Effect report will continue on Thursday, when we'll compare how Amazon has taken market share from B-to-B retailers vs. B-to-C retailers. In the meantime, make sure to download the full report here.
