The Amazon Effect: What Does it Mean for UK Retailers

The Amazon Effect is a word used to explain the competition faced by online and offline retailers by the world e-commerce titan Amazon because of the excellent and topnotch service they provide and their delivery service, which runs on almost all the parts of the world. 

Statistics show that Amazon is among the largest retailers in the UK, thereby having 33.5% of what the United Kingdom spends with retailers. Amazon has affected so many UK retailers so much, with customers reviews showing that amazon has the best and unique delivery services. 

Methods That UK Retailers Can use to Counter This Effect 

The impact of the Amazon Effect is felt everywhere in the world, including the UK. A lot of retail businesses have closed down due to this. By applying some of these tips, the Amazon effect on your retail business in the UK will be minimal:

  1. Your Online Retail Store Should Have a Physical Presence

 It is ideal for letting your retail store have both an online and offline presence, as this gives you an advantage. Make sure that your offline retail shop offers the same or even more excellent service it offers online. 

Many companies who did this are doing very well in the retail industry, so retailers in the UK are advised to follow up and apply this method to reduce the Amazon effect to a minimum.

  1. Analyze Your Customers’ Behavior  

 If your company can follow up on the activities of consumers when they are inside your store, it can help you detect some things you might have overlooked in the past and go through online stores reviews to know where your company is not doing well. Many retail stores had testified that they corrected many mistakes when they paid attention to their customer activity in the store. 

  1. Make Use of Mobile Technologies 

 Combining an offline and an online store is the best because many things are now digital, so your customers may need to purchase physically. Integrating artificial intelligence into your retail business will build up your business and improve your customer service. 

  1. Good Usage of Analytic Data to Make Business Decisions 

 Making good use of collected data on consumer behaviour will help you create good policies and make excellent business decisions to go out from the shadows of Amazon. 

  1. Improvement in business Processes 

 To escape the Amazon effect, your business processes should not be stagnant. Rather it should be dynamic so as not to be left behind on important trends and innovations. Many retailers have closed down in the UK due to not improving on their business processes and decisions.  The retail store should always look for new things to try out to avoid any major shift. 


The Amazon Effect has affected other retail businesses and has even caused some to close down due to a lack of customers. But when other retail stores follow the latest trends and improve on so many of their services, there will be a tangible Change.