Advertisement
08/07/2018

Customers’ shopping savviness pays off for Amazon big time

The sophisticated price searches of Amazon Prime members on Prime Day contributed to the highest level of event participation — and spending — to date.

Consumers hit Amazon’s website on Prime Day ready to buy, but many checked prices outside of Amazon before hitting the buy button. Sixty-two percent of shoppers now check “a couple” or “several” prices. European countries were much more likely to check prices, and France recorded the most consumers likely to check several prices (44%), according to “Beyond the Hype – The Evolution of Consumer Shopping Behaviors,” a study from Periscope By McKinsey.

Among these shoppers, those in the U.K., United States and Italy described themselves as having a planned shopping approach during Prime Day this year, whereas 53% in France and 48% in Germany considered themselves to be more spontaneous.

Despite their shopping style, the amount of customers participating in Prime Day increased between 4x and 5x, with the U.K. having the greatest increase with a multiple of 6.8x. Participation has also multiplied year-over-year in every country from 2015 to 2018, according to the study.

Customers in every country also spent more on Prime Day than in 2017. The biggest jump was in the U.K. where 59% of shoppers spent “a bit more” or “much more.” This was closely followed by France (57%) and Germany (54%). There are also signs the United States is becoming more constrained in its spending, as it was the top country where 40% of shoppers said they “spent the same.”

Consumer electronics was the number one shopping category this Amazon Prime Day with an average 48% of shoppers buying these goods. Books, movies and music (34%), clothing and accessories (37%), and toys (28%) were also highly purchased in all countries. Beauty and fragrance also performed well with an average 28%, followed by kitchen appliances at 26%.

“There is no doubt that Amazon Prime Day keeps gaining in popularity with huge global awareness, and multiplying participation every year,” said Channie Mize, senior VP and global sector general manager, retail, at Periscope By McKinsey.

“Shoppers are spending more at Prime Day, but they are getting smarter, they are becoming increasingly price aware, and are more willing to see what else is available elsewhere online,” Mize said. “It is a huge opportunity to Amazon, but other retailers should take heed that with the right sales initiatives and understanding of their customers, they can keep them loyal and coming back for more.”

Sales like Prime Day are also contributing to the continued decline of purely offline shopping. However, the U.S. trails other countries in its adoption of the online experience with 10% of customers saying they only shop offline. This is more than double other countries, where the average is 4.5%. All countries reported that a mix of online and offline was their dominant way to shop, but an average 16% of customers stated they mostly shop online. Germany and the U.K. led the way in this regard with 21% and 17%, respectively.