A study by Feedvisor, a group that helps brands on issues related to e-commerce marketplaces, has revealed startling data which clearly shows that the retailers should be very worried about the dominance of Amazon over the e-commerce industry globally.
In the study, the group has claimed that almost three quarters or 75 per cent of consumers tend to go directly to Amazon to shop, when they are ready to make a purchase of a specific product. The study was however based on the shopping behaviour of over 2000 people in the U.S. who had made at least one purchase from Amazon.com within the last two years.
There are many very large global retailers such as Walmart, Target and Macy’s that are trying to boost their online sale channels but Amazon is still a very potent threat to them on the online front. The study claims that more shoppers are preferring to make use of their smartphones to make online purchases and therefore avoiding going to the shopping malls. According to data from eMarketer, in the US e-commerce market, about 54.2 per cent of all purchases would be accounted for by Amazon by the end of the current year which would be up from the 2018 number of 48 per cent in 2018, according to data from eMarketer.
According to Feedvisor, the online search for many shoppers initiates with a search on Amazon, and therefore such people and searches do not make use of the other available search engines such as Google, Yahoo and eBay. The report claimed that while 66 per cent of the people interviewed typically begin their online search for specific products on Amazon, a staggering 95 per cent of them opined their satisfaction at the results that the e-commerce giants put out for them.
The study from the pricing platform for online retailers further said that an “all-time high” number of 48 per cent has been reached by Amazon in terms of the consumer loyalty and that number of people visit the e-commerce giant’s website at least a few times a week. In addition, of the 2000 people surveyed, at least 89 per cent confirmed that they go to Amazon at least once in a month. The group said that “Amazon has deeply integrated itself into consumers’ daily lives,” which is bad news for its rivals.
According to analysts, the threat to the rival retailers is further increased by the fact that Amazon is now also venturing into more into bricks-and-mortar retail. A new grocery chain is reportedly being planned to be launched by the company.
Wells Fargo analyst Ike Boruchow said in a note to clients this week that in addition to an increase in the number of Amazon’s Prime members, the e-commerce giant is also acquiring new customers that are getting more engaged in its online platform.
“Although Amazon’s penetration of total web users is already very high … the company is not having difficulty finding new customers even as their user base grows to remarkably high levels,” he said. According to estimates of Wells Fargo, during the fourth quarter of last year, about 195 million Americans across browsed Amazon. That number is almost the same as three fourths of all the internet users in the US.
(Adapted from CNBC.com)