As COVID-19 shook the global economy, Amazon.com Inc.’s e-commerce revenue saw gains of 47.0% year over year for the second quarter of 2020. The pandemic has led to a surge in online orders. A spike in sales from Amazon’s core e-commerce operations, which include online stores, third-party seller services, and retail subscription services, has fuelled its revenue growth amid the COVID-19 pandemic. The coronavirus pandemic forced a huge amount of retail purchases to move online, and as a result of this that has Amazon.com is winning.
According to a recent study by Dunnhumby Retailer Preference Index, Amazon now holds the crown of being the country’s most popular grocery store. He used a “COVID Momentum Metric system” to get these results, which considers preference drivers, emotional connection, and financial performance to get an RPI ( Retailer Preference Index) score.
This giant retail platform is even ahead of big-box retailers like Walmart, Costco, and even fan-favorite, Trader Joe’s. The company’s speed and digital performance seem to owe to the fact that in today’s date Amazon has the top spot. Amazon is the best e-commerce marketplace to build a brand. It is driving 43% of total e-commerce growth this year, and recent sales have remained strong.
With corona-virus starting in March, Amazon experiences a sudden rise in online orders. The demand has been increased so much that both Amazon Fresh and Prime Now experienced delivery delays and unavailable inventory. Moreover, Prime Pantry also ceased its operations for a while since they were able to handle too many orders. Prime Pantry’s operations have since been permanently ceased.
Handling well the increased demand, timely delivery from Amazon has since been continued and Amazon Fresh is constantly offering daily deals on groceries.
“Covid-19 created a perfect storm that played right into the unique strengths of Amazon’s customer value proposition,” Dunnhumby said in the study. “In Q2 of 2020, Amazon reportedly tripled their online grocery stores.”