KEY POINTS

  • To fight back against Amazon’s expanding retail dominance, e-commerce companies need to understand how its customers shop and how they can be lured away. Business Insider Intelligence’s 2018 Amazon Commerce Competitive Edge Report provides a strategic framework for e-commerce companies and their partners to better compete with Amazon. These strategies are based on exclusive consumer survey data and interviews with industry leaders.
  • Amazon’s popularity and value proposition make the e-tailer appear untouchable. In fact, rivals are essentially fighting over Amazon customers who sometimes shop elsewhere. By 2023, Amazon is projected to collect nearly half of US e-commerce sales, as customers increasingly turn to the e-tailer for its free shipping, wide product selection, low prices, and Prime membership perks.
  • But the e-commerce titan has weaknesses — and they’re apparent in customer shopping behaviors and preferences. In our 2018 Amazon Commerce Competitive Edge survey, over 1,000 respondents shared how and why they shop online both on and off Amazon at different shopping stages. Some habits include turning to Google or couponing sites to begin shopping and checking out rival sites once they find a product they want to buy on Amazon.
  • Amazon customers fall into three groups based on their shopping habits. By catering to the unmet needs of these groups, e-commerce companies can siphon customers at each stage of the shopping funnel.
    • Open-Search Shoppers typically begin shopping outside of Amazon. This segment, which makes up 68% of respondents, usually starts shopping on non-Amazon channels like Google Search, online ads, or other e-tailers. That tendency makes these shoppers ripe for marketers.
    • Comparison Shoppers check out other sites once they find an item they want on Amazon. This group makes up 66% of respondents, who all feature a moment in their shopping process in which they’re open to conversion.
    • Amazon Loyalists turn to Amazon when they begin shopping, and typically check out without comparison shopping on other sites. This group, which makes up 15% of respondents, consists of Amazon’s most devout customers.
  • To attract Open-Search Shoppers, marketers must hit key channels with the right message.
    • Channels. Google Search is far and away the most important channel to attract Open-Search Shoppers, since 72% begin their shopping process there. Beyond search, it's important for marketers to grow visibility across the range of touchpoints others in [...]