In many ways, Amazon could bring about the demise of “mom and pop” shops and even larger corporations with their steadily increasing retail prowess.
According to Shep Hyken of Forbes Magazine, as many as 64 percent of households in the U.S. have an Amazon Prime membership. In addition, “$4 out of every $10 spent online in the U.S. is with Amazon,” Hyken said.
With competitive prices, a constantly expanding product and brand selection and sinfully fast shipping, these results are not surprising. Amazon sells everything from electronics to chicken breasts—both of which can be delivered by a method of two-day shipping with their Prime membership.
In Amazon’s recent acquisition of the grocery chain, Whole Foods, their grocery selection will no doubt grow, along with the pressure placed on local grocery stores.
Many grocery stores, such as Walmart and Kroger, have a service where customers can order groceries and pick up their items upon arriving at the store. However, Amazon delivers, taking all the effort previously exerted by the consumer completely out of the equation.
Even more extraordinary, those who live in areas with an Amazon distribution center can receive packages the same day with their drone delivery option called Prime Air.
According to Amazon, customers can receive their packages in 30 minutes or less by drone delivery. Amazon’s first recorded delivery by drone was conducted in 2016 in Cambridge, England, and took a total of 13 minutes.
Amazon has already led to the downfall of the iconic children’s store Toys “R” Us.
According to Abha Bhattarai of The Washington Post, stores like Amazon have crippled sales and prompted the nearly $5 million debt the toy retailer now holds.
“In recent years, Toys “R” Us has faced mounting competition from Amazon, and big-box chains like Walmart and Target, which often offer the same toys for less money and more convenience,” Bhattarai said.
Furthermore, most gift-givers prefer to shop online rather than in store during the increasingly excessive holiday season.
According to The National Retail Federation, over 56 percent of consumers are expected to holiday shop online this year, and over 48 percent of shoppers believe free shipping to be a top factor in choosing a retailer—foreshadowing great monetary outcome from Amazon.
In a fast-paced world where people are often too busy to find time to do something for themselves, Amazon makes buying things almost effortless.
While some people enjoy buying from local stores, the 64 percent of American households that would rather buy from Amazon may lead the company to command the retail market in its entirety, eradicating the concept of local stores altogether.