Report: Amazon continues to influence shoppers’ online expectations

Amazon continues to dictate the pace of online retailing, making it the “go-to” retailer for a majority of shoppers.



This is according to a report from PowerReviews, which surveyed more than 1,000 U.S. consumers aged 18 and over, about the features that make Amazon a leader, and the steps that brands and retailers can take to compete. Seventy-one percent of the shoppers said they make at least one Amazon purchase a month.



However the reasons they are attracted to the retail giant run the gamut, including variety of products (79%), free shipping (64%), better deals (60%), volume of customer reviews (55%), search capabilities (54%), and mobile experience (29%).



Further, 70% of surveyed shoppers use brand or retailer sites to research their purchase before navigating to Amazon to complete the transaction, a cause of frustration for retailers. Amazon is shaping the e-commerce landscape with detailed product information, authentic user generated content, and loyalty perks that consumers now expect, the study said.



“Amazon accounted for almost half of all 2016 online holiday sales and is the undisputed e-commerce market leader,” said Matt Moog, CEO, PowerReviews.



“Our survey found that consumers biggest pain point pre- and post- purchase was not having enough information,” he said. “Amazon provides rich content in the form of product reviews, photos, videos and descriptions to build trust. Consumers have come to not only rely on this information but expect brands and retailers to provide it as well.”



Consumers have come to rely on Amazon to deliver everything from daily essentials to the higher priced splurge items. Unlike a typical loyalty program offering discounts, Amazon Prime charges customers a membership fee in return for benefits such as free shipping and free videos. In return, shoppers are fiercely loyal, the study said.



While many retailers try to compete with free shipping (which attracts 84% of shoppers) and free returns (62%), consumers reported these have become table stakes. Instead, to be encouraged to shop at other e-retailers, brands need more compelling incentives, such as free products (33%), loyalty points (29%), early access to sales (27%), or early access to products (19%).



“Retailers are under no illusion about the competition they face, but they have the tools compete and win by providing relevant content and by utilizing loyalty programs to increase engagement and conversion,” Moog added.