A new study of Amazon Prime members - conducted by Kantar Marketplace and sponsored by Replenium - found that:
• "One in four shoppers are already using repeat shopping automation for products they need regularly."
• "A wide-range of product categories, from personal care to perishable food, are included in repeat shopping purchases."
• "Appetite for repeat shopping automation also exists across a wide array of retail formats, with one in three indicating they’d consider using in mass retail, one in four in grocery, and one in five in drug, if offered, over the next six months."
• "Over two-thirds of shoppers indicate they would allocate some of their spend at their favorite retailer to repeat shopping automation, if offered. Offering the capability across shoppers’ favorite retailers is estimated to lead to a 33% increase in spend, among those spending $101+/month on the capability, a
result of more shoppers moving into this spend bracket."
• "Convenience, in the form of delivery and time savings, product discounts, and the ability to stay in stock on most frequently used items are top reasons shoppers like repeat shopping automation."
- KC's View:
A few things here…
First, in the interest of full disclosure, I have to point out that Replenium is a long-term MNB sponsor.
Second, Replenium's CEO is Tom Furphy, who joins me here on MNB regularly for The Innovation Conversation.
The thing is, I would've reported on this study's results if they'd been sponsored by the Jones Company, which had as its CEO Mary Jones. So I saw no reason not to do so because of the Replenium-Furphy connection.
I've always been a longtime fan and user of Amazon's Subscribe & Save, which is an auto-replenishment system that was launched - by a team that Tom Furphy led - back in 2007. I've been arguing pretty much since then that auto-replenishment was a threat to many of the sales done by traditional food retailers, and they needed to find an answer to it.
We have some two-dozen items on Subscribe & Save in our household, which means that we are absolutely loyal to Amazon on those items, and absolutely loyal to the brands that we have on our list. Because of the convenience, these are items that, while we used to buy them in stores, we'll never have to buy in a store ever again. For us, they also are items for which there is absolutely no advantage to buying them in the store.
Auto-replenishment, I've always felt, provides a dynamic way for the retailer to become more intimate with the shopper's needs and, therefore, more responsive because the data is there to be acted upon.
And so, I'll repeat what I've said almost from the moment that I placed by first Subscribe & Save order - retailers have to offer their own version (which is what Replenium is … and yes, that's a free plug), or figure out an answer to it. Ignoring auto-replenishment and all its implications is not an option.