To fight back against Amazon's expanding retail dominance, e-commerce companies need to understand how Amazon customers shop and how they can be lured away. Our forthcoming Amazon Commerce Competitive Edge report uses exclusive consumer survey data to design a new strategic framework to help e-tailers compete for customers against Amazon — and win. This note, excerpted from the full report, will look at comparison shoppers, or those who, when they’ve found a product on Amazon, shop other e-tailers before making a purchase.
Specifically, this note will:
- Use exclusive survey data to identify the factors that motivate shoppers to compare products once they select an item on Amazon.
- Examine strategies e-tailers can use to steal those customers away from Amazon, through product positioning and key perks.
Who Comparison Shoppers Are And Why They Matter
Comparison shoppers are e-tailers’ best hope to steal sales directly from Amazon. Business Insider Intelligence’s 2018 Amazon Commerce Competitive Edge survey found that 66% of respondents are comparison shoppers, meaning that they consider other options before committing to buying on Amazon, giving e-tailers a tremendous opportunity. These shoppers do not always work Amazon into their purchase process, but when they do, they still compare their findings at other e-tailers' sites.
Here’s what makes the segment stand out:
- Comparison shoppers’ purchase process features a clear moment when they can be lured away from Amazon. After finding a product they want on Amazon, the segment goes to other e-tailers sites to compare listings, giving e-tailers a chance to capture the sale. This is in contrast to shoppers who typically buy the product on Amazon without a second thought, meaning comparison shoppers are open to buying from other e-tailers during the comparison process.
- The vast majority make purchases from other e-tailers. The entire segment has made a purchase from Amazon in the last 12 months, and 80% have Prime accounts. But 74% made a purchase from another e-tailer in the last 12 months, as well. That means the segment is used to shopping away from Amazon.
- Most do not start their purchase journeys on Amazon. Instead of serving as a guaranteed starting or end point to shopping journeys, Amazon's role among this group is that of just another — albeit, highly popular — online shopping option. Only 23% of comparison shoppers said [...]