LONDON (Parliament Politics Magazine) – There is much arguing about whether Amazon is a high street killer or not, but the fact is that Amazon is a major player in the UK retail industry. The company is responsible for 9% of all retail sales, making it a major player on the high street. Here, we look at Amazon’s turnover rate, market share and rivals.
Amazon’s turnover rate
Amazon’s turnover rate in the UK has increased by more than 20% in the last decade, a record high by any company. In the first quarter of 2019, the online retailer employed more than 18 thousand people in the UK’s transport and logistics sector. In addition to its UK operations, Amazon also operates fulfillment centers across Europe.
Despite its high turnover rate, Amazon still has huge employment needs. Its executives worry about hiring enough people to keep pace with the demands of its customers. Amazon has tried to combat this by using a mass-management by machine model. While this model has helped Amazon retain a large number of workers, it has also resulted in a high turnover rate.
The company’s high turnover rate can be explained by the company’s business model. Employees at Amazon typically turn over at least once every eight months, which is much higher than the average for most companies. Amazon’s churn rate is one of the reasons why it has been criticised for its work practices. For example, its warehouse workers are considered “industrial athletes,” with a daily target of burning at least 400 calories.
Its market share
In the UK, Amazon’s market share has grown significantly in recent years. According to Edge by Ascential, an ecommerce insights firm, the company’s share of ecommerce sales in the UK increased from 28.8% in 2018 to 30.1% in 2019. According to the firm, Amazon will account for $30bn in ecommerce sales in the UK in 2019. Second-placed eBay takes 9.8% of the market, while Tesco, Sainsbury’s, and Walmart/Asda all have around three percent of the online market. John Lewis and other retailers are able to compete in the online market with a more personal touch.
According to the report, 93% of online shoppers in the UK made a purchase on Amazon in 2021. The figures show that despite the lockdown, Amazon retained many of its customers. Moreover, in 2022, 25.3% of its UK customers are planning to spend more on the e-commerce site, while 13.2% of them plan to spend less. As of the third quarter of this year, most of the UK customers visited Amazon to find gifts, check prices, and find inspiration for purchases.
Its rivals
As one of the world’s largest online retailers, Amazon has many rivals. Currently, it has a market share of 37% of the e-commerce retail market in the US, and is expected to grow significantly by 2022. In the UK, Amazon is the top retailer on mobile devices with more than 36,000 unique visitors per month. However, its competition is not limited to mobile devices; eBay and Alibaba are also major rivals in many international markets.
While Amazon has many advantages, there are still a number of disadvantages to competing with the company. While its large reach and low prices make it one of the most popular online stores in the UK, its logistics may weaken competition and result in higher prices for consumers. In the UK, thousands of businesses use Amazon for their online sales.
In the EU, Amazon is the target of antitrust action due to its dominance of the online retail sector. EU regulators have been looking into Amazon’s market power since 2018. The U.K. ceased membership of the EU in May 2018, but this does not mean that it is immune from scrutiny. The Competition and Markets Authority (CMA) can now conduct an investigation independently and is no longer bound by EU rules to avoid duplicating the probes of the Commission. The CMA is investigating whether Amazon has an unfair advantage over other online retailers.
Its customer service
Whether you are a new customer or an existing one, Amazon’s customer service team is committed to ensuring a 100 percent customer satisfaction rate. While this may seem impossible, Amazon has a number of ways to ensure customer satisfaction. In the UK, for example, Amazon offers a Prime membership to members. This means that over 40% of customers have access to the Prime service. Providing excellent customer service to its members is crucial to Amazon’s success.