This was the very question from my article last October – and the answer provided in that article rings even more true today. Now we can see more clearly, and fully confirm, that Amazon needs what you already have: location, location, location. They have built and led with an impressive technology stack that fully streamlines their operations, but more importantly, streamlines the consumer’s transactional experience.
Amazon makes it so easy to buy from them, that we almost become addicted to clicking one day and having the merchandise arrive the next. However, next day is just not good enough, which is why they’re suddenly making major moves to deliver a local, same day experience. This concept of a friction-free shopping experience, that dissolves the lines between brick and mortar locations and the digital world, is a winner – Amazon recognizes this and is moving to execute that fantastic vision. Buying the 400+ Whole Foods Market locations may just be their new starting point.
The integrated silo approach to patch together complex systems is no longer working, and in some cases is breaking the backs of retailers.
So the battle lines are being drawn quickly. Some will run for the exits, while others will freeze with fear and doubt. This reminds me of the old saying: “When you’re being chased by a bear, you don’t have to outrun the bear, you just need to outrun the guy running next to you.” With that in mind, look out for those local and regional retailers who are prepared to take a stand by moving quickly to dramatically up their technology game. When local retailers and their supply chain partners execute a strategy that not only streamlines internal execution, but also delivers on a seamless transactional consumer experience, you can bet Amazon will face a serious challenge indeed.
The integrated silo approach to patch together complex systems is no longer working, and in some cases is breaking the backs of retailers.
I’m a firm believer that the integrated silo approach to patch together complex systems is no longer working, and in some cases is breaking the backs of retailers. I believe the only way to achieve a truly seamless consumer transactional experience, in a way that is manageable and affordable for the retailer to actually execute, is to deploy systems that share the same transactional logic and data. At ECRS, we call this approach “Shared Unified Transaction Logic”. Sure, it may sound like just another $10 term, but the more you learn how this approach works, the more you will identify it as a must-have game changer. It’s the one approach that will allow local and regional operators to execute faster and more seamlessly than their staid competitors, enabling them to dominate their markets and compete head-on with the emerging Amazon.
My point today, as it was in October – without seamless, frictionless transaction technology, Amazon wouldn’t be Amazon. If you’re a local or regional grocery store, health food store, specialty food, pharmacy, or even a food cooperative, you have what Amazon wants, which is location, location, location. But, location alone can’t win against Amazon. No, your final coup de gráce will come when you deploy technology that makes buying at your stores, or ordering online for store pickup or same hour delivery, easier than when your customers do the same type of transaction with Amazon.
Stay in the game, shed the old silo-based systems, and reposition your brand through a shared and unified transaction technology. When you do, don’t be surprised that you become the local insurgent winner in this brave new digital retail world.
