What Should I Know to Shop on Amazon
Why Consumers Pick Amazon, and What You Can Do About Information technology
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If y'all're non offset, you're last.The old saying may sound harsh, but information technology'south especially truthful for retailers who are struggling to preserve their marketshare against Amazon. Today, over half of Americans starting time their product searches on Amazon, making it the number 1 shopping destination. But why? If you recall it'due south as uncomplicated equally a free shipping offer, you lot're incorrect. We surveyed 100 Amazon users and found three key insights for retailers.
ane. Consumers pick Amazon because they take a better product selection
While gratuitous shipping is bully, 31% of respondents option Amazon considering information technology is a "one stop shop." Consumers know they can run across almost every possible purchase option in i identify, and they can narrow down the listing of choices by scrolling through the product reviews (the second reason people cull Amazon over other retailers).
But in that location's good news. On Wednesday, Google and Walmart announced that they are teaming upwards on Google Express , a site where shoppers can purchase products from a combination of retailers in a single transaction. With the partnership, Walmart will add together ane million SKUs. Additionally, all retailers opting into "Purchases on Google" will now be eligible for Google Limited, giving shoppers access to an even greater pick of products and creating a bigger shopping destination. Google is also dropping their $95 Prime number-like almanac membership fee, instead allowing shoppers to take reward of discounted and free aircraft offered by the retailers they are purchasing from. In the future, consumers volition be able to use their voice activated Home devices to gild (or reorder) goods from their favorite retailers via Express.
While information technology won't level the playing field with Amazon, it's certainly a step in the right direction. Google and Walmart accept already stated they are not trying to build a "me too" solution, rather they are laying the infrastructure for how consumers will shop in the time to come. If Google can create a identify that gives consumers a plethora of choices and an easy, affordable way to buy, they tin assistance retailers chip abroad at Amazon's ecommerce market share.
two. People pay for Prime memberships to get free shipping
Three out of every four survey respondents said they bought a Prime number membership to become free aircraft on their purchases. They also desire it fast, with 67% saying they signed up considering of Amazon'due south affordable (or free!) same 24-hour interval, 1 mean solar day, and two solar day shipping options. This shouldn't come as a surprise, and if you want to remain competitive online, this has to be a office of your strategy.
Retailers who sell products that are not exclusive to their make are about at risk. If you're on par—or even slightly above—your competitor's price, a complimentary aircraft offering will increase your chances of winning the auction. Make certain to test reduced and free shipping offers in your ad copy and extensions every bit these incentives may earn you more than clicks over others options. Retailers who accept a brick and mortar presence have a unique advantage. Past using ads to straight local shoppers to pick up online purchases in nearby storefronts, consumers tin get their goods in real time. Retailers can also salve coin on shipping costs by using local stores as mini fulfillment centers. Local delivery services tin get products into the easily of customers faster at a lower total toll.
3. Consumers buy electronics, dwelling goods, and books on Amazon
We asked survey respondents which categories they buy from the most. Nearly three out of four (73%) of them said they buy electronics, followed past home appurtenances (65%) and books (56%). Retailers in these categories will accept a harder time competing with the giant because margins—particularly for consumer electronics—can be low. Consumers who make purchases in the first two categories tend to spend more than fourth dimension doing enquiry earlier making a purchase, which is why it'due south so important for a retailer to have a presence throughout this ownership process. Additionally, retailers should make sure their ad management platform uses comprehensive data like keywords, production, commerce, and pricing data to make sure they're running the about efficient advertizement program possible.
So what products do consumers purchase the least on Amazon? Merely 21% of respondents said they purchase nutrient and grocery, and even fewer (fourteen%) buy automotive-related items. Just as Amazon made a major power move this yr in its bid for Whole Foods, we conceptualize they'll endeavour new ways to increase purchases in all categories offered.
Looking Ahead
It'due south no hole-and-corner that Amazon has created a convenient and efficient shopping experience that'due south difficult to match, but by developing a deep understanding of how your customers observe you, and why they choose yous, you lot can focus your resources on the areas that will take the greatest bear upon. This may mean making merchandising changes, offering customers an incentive for more production reviews, improving the mobile experience, offering free aircraft, investing in new 3rd party data sources, or trying new advert types. By putting the customer's interest get-go, y'all'll never end upward concluding.
About the data:
- 100 respondents
- 54% aged 25-34, nineteen% anile 35-44, 16% anile eighteen-24, 11% aged 45-54, 5% aged 55-64%
- 51% male, 49% female
- HHI: 36% $25k-$49k/yr, 28% $50k-$74k/twelvemonth, 18% $0-$24k/yr, 11% $75k-$99k/yr, seven% $100k+/yr
- 51% Suburban, 27% Urban, 22% Rural
- 59% has no kids, 41% has kids
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