The last ten years of retail have been turbulent. Half of the Fortune 500 companies we know have disappeared, and retail brick-and-mortar locations are closing faster than ever. Year-over-year, bankruptcies for retail brands have increased by 24 percent. Brands have frequently argued that Amazon is a top competitor when it comes to consumers shopping online for convenience, flexibility, and ease of on-demand experiences they demand.
Cue the behemoth Amazon. More than 310 million active shoppers engage with Amazon worldwide, resulting in $136 billion in US sales so it’s no wonder brands are giving Amazon the “side-eye” as the company encroaches not only in retail sales, but also financial services. And more recently, with Amazon’s purchase of Whole Foods — food delivery. Marketers are constantly looking for new ways to mimic Amazon’s approach, so we took it to the streets and asked Amazon shoppers themselves what they think the brand does so well.
In our survey of more than 1,200 shoppers aged 18-65+, we asked questions about their shipping preferences, product recommendations and product types while shopping on Amazon. This report will give retail brand marketers important insights so you can stop scratching heads to understand why shoppers choose Amazon over your own branded shopping experience. SmarterHQ can help you focus on measuring customer decisions with behavioral marketing to beat the billion dollar industry of Amazon.
Key findings include:
• Without free two-day shipping, Amazon Prime users will cancel their membership: 82 percent of buyers who had a specific goal in mind also demanded speedy, free shipping. Customers are likely purchasing a retail brand’s products on Amazon simply because they have better shipping options, sometimes within only one hour.
• People really use Amazon to shop for very specific items: 57 percent of buyers on Amazon are looking for a specific product, and 63 percent of all shoppers already know what they want before they start shopping. Potential customers aren’t browsing Amazon, and they are 25 percent more likely to purchase branded products from the e-commerce site.
• Customers will shop with a retail brand more often if they’re provided relevant messages based aggregated shopper data: In a retailer’s marketing messages, it’s important to include products their customers have engaged with and to suggest new ones based on their customers behaviors. If not, 47 percent of shoppers are moving from a brand’s website and straight to Amazon with its personalized product reminders and suggestions.
• Customers may seem like die hard Amazon fans, but it’s really only a few things that tickle their fancy: Between 37 to 57 percent of shoppers on Amazon are purchasing electronics, books, movies and leisure products like toys and hobby items. Luxury brands should find this especially comforting; people chose not to purchase products above $200 on Amazon.
To find out more about how your brand can win customers back without losing an arm, leg, or any of your staff, download the full report here.