Stores Are for Immediacy: Despite the growing presence of same-day delivery, research from Netsertive found that a good number of consumers (43%) still go to the store when they need a product within 2 to 3 days. Just under three in 10 said they could go either way on visiting a store or an online retailer. Not surprisingly, 80% "webroom"—aka go online to research—major purchases like appliances before buying them in-store, and 72% use online reviews.
Amazon's Ad Business Is Growing: According to L2, the retailer's US ad revenues reached $1.65 billion in 2017 and are forecast to increase 48.2% this year. In a comparison of traditional brands vs. Amazon's private labels and indie brands, the big brands dominated the share of headline search ads. During Q3 and Q4 2017, Bali led in apparel with a 6% share, Garnier in beauty (10%) and Gillette in personal care (8%). eMarketer estimates that Amazon's search ad revenues will hit $722.8 million in 2018.
Strange Bedfellows? Amazon recognizes the importance of physical retail, especially for higher-ticket items. Its latest partnership is with Best Buy to sell its 4-K and HD Fire TV Edition models. Best Buy gets exclusive merchandise, and Amazon gets the benefit of shoppers getting to experience the tech in-person. This arrangement is similar to the deal Amazon has with Kohl's to sell certain tech items in select stores, with Kohl's also serving as a hub for Amazon returns.