Amazon is moving at the speed of light, and the e-commerce behemoth’s consumers are dictating how third-party sellers are engaging, selling and staying competitive on the platform.
Feedvisor, a software company, and Walker Sands Communications conducted a study, “Getting to Know Your Consumers: 2018 Amazon User Study,” for Amazon’s third-party sellers who are looking for ways to stay agile in the digital landscape.
The study, which surveyed some 1,500 Americans—65 percent were Amazon Prime members and 35 percent were non-Prime members—revealed information about their buying habits, including the frequency of their purchases, how they select items to buy and sales factors valuable to their purchasing decisions.
Overall, the report demonstrated that Amazon consumers, especially Prime members, are browsing and shopping on the platform more than ever, while setting the bar high for third-party sellers. According to the study, third-party sellers can step up their e-commerce game and engage consumers along their purchasing journeys.
Amazon a hub of consumer interaction opportunities
When selling products on Amazon, third-party sellers have a myriad of ways to attract shoppers.
According to the survey, roughly a third of Amazon users go straight to Amazon’s website—with the intention of browsing for daily promotions, researching products and comparing prices and are ready to buy items. About 75 percent of consumers will begin their purchasing journey with Amazon’s search box, where they have access to millions of products with a few clicks.
Amazon’s Prime members are more likely to visit Amazon—with 85 percent visiting at least once a week and 56 percent of non-Prime members doing the same. Roughly 60 percent of Amazon consumers said they shop throughout the week—with Prime members more than twice as likely to shop on e-commerce platforms, like Amazon, daily, compared to non-Prime members. What’s more, roughly half of these Prime members will end up buying items on the site—providing third-party sellers the opportunity to bridge the gap between browsing and purchasing.
These numbers have increased since 2017, where only 72 percent of Prime members and 32 percent of non-Prime members shopped at least once a week—and Amazon’s growing role in the browsing and purchasing process could be attributed to this change.
Third-party sellers’ ratings and reputations influence consumer decisions
When consumers are browsing items on Amazon—they are most likely to evaluate a third-party seller’s rating and reputation before deciding to purchase a product.
The study noted that more than 95 percent of Amazon consumers said that they always or sometime read full item descriptions before buying from third-party sellers. Roughly 80 percent of Amazon consumers also said they always or often check a third-party seller’s ratings before resuming their purchasing journey. If the rating of a product is less than three stars, roughly 90 percent of Amazon consumers said they would not consider buying the product from a third-party vendor. The bottom line for third-party sellers is to have a healthy mix of good products and good service for Amazon consumers when they shop on the platform.
Price is the golden ticket for consumers’ buying motivations
The study found that price was the most important factor for Amazon consumers’ purchase decisions.
According to the study, more than half of Amazon consumers visited Amazon’s website for one primary reason—to compare prices before they purchased products. Almost two thirds (65 percent) of Amazon consumers said price was the most important factor, with free shipping (56 percent) and positive product reviews (50 percent) following close behind.
The study’s results demonstrate the importance of competitive pricing for third-party sellers—and if they use tools, including Amazon’s algorithmic re-pricer, they can determine prices without risking profit margins or other operating costs.
Amazon consumers demand a mobile-friendly experience
Amazon consumers expect third-party sellers to have mobile-friendly sites for a seamless purchasing journey.
According to the study, 47 percent of Amazon consumers reported that they shopped on their smartphones—up from 41 percent from 2017. The study also demonstrated that Amazon Prime members are more likely to use Amazon’s mobile app compared to non-Prime members.
The study’s results demonstrate that mobile commerce is on the rise and if third-party sellers do not jump on the mobile bandwagon, they could be lagging behind in the e-commerce game.
Amazon’s name yields greater consumer loyalty
Amazon’s name could be a boon for third-party sellers—if they leverage it with caution. According to the study, about 80 percent of Amazon consumers said they trusted Amazon’s shipping more than third-party packaging. Due to this factor, many third-party sellers have signed up for Fulfillment by Amazon, which enables them to use Amazon shipping items, including packaging and boxes, when they sell items on Amazon’s website. By using this feature, third-party sellers can secure the trust of Amazon’s consumers and reap from the benefits of Amazon’s presence.
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