2021 Consumer Behavior Report
2021 Consumer Behavior Report
Introduction
Providing a glimpse into the minds and behaviors of today’s
digitally savvy consumers, this report aims to illuminate
brands and retailers to the growing trends and expectations
of shoppers on Amazon and other e-marketplaces as we
head into a post-pandemic landscape for e-commerce.
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TABLE OF CONTENTS
LOOKING AHEAD 31
Key Takeaways
1 Online shopping will remain dominant, with 57% of 4 Amazon remains a driving retail force as 92% of
consumers claiming they do more online shopping consumers say they are more likely to buy products
now than they did before the pandemic. from Amazon than other e-commerce sites while 56%
of consumers say they visit Amazon daily or at least a few
times a week.
2 Consumers are not as brand loyal as in previous years, with 5 Amazon continues to be the first place consumers look for
60% of consumers saying they purchased products product information, with 75% of consumers saying they
from brands they hadn’t previously tried before check prices and product reviews on Amazon
during the pandemic. before making a purchase.
3 Ads on Amazon are resonating with consumers as 55% of 6 Consumers still view the holidays as the best time to score
shoppers said they notice ads on a search results deals with 47% saying they wait specifically for
page and 49% of shoppers aged 27-40 say they Black Friday and Cyber Monday to make a big
always or frequently/often buy the first product purchase.
listed on an Amazon SERP.
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47%
of consumers make a
purchase on Amazon
at least once a week
1 eMarketer, 2021
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62% 71%
18% 10%
10% 7%
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8 CONSUMERS USE AMAZON FOR EVERY STAGE OF BUYER JOURNEY
Where consumers check prices before making a purchase Where consumers check product reviews prior to making
a purchase
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63%
of all global online spending occurred via digital
marketplaces in 2020, which was a 29% increase in
gross merchandise sales.2
Amazon, Walmart, and e-marketplaces as a whole continue to
grow in popularity among consumers, becoming the preferred
92% choices for many shoppers over brand and retailer websites.
Amazon is once again a top platform for shoppers, with 92% of
of consumers are more likely to buy products from consumers surveyed agreeing that they are more likely to buy
Amazon than other e-commerce sites. products from Amazon than other e-commerce sites, up slightly
from 89% in 2019. As so many consumers embrace Amazon,
it comes as no surprise that the online shopping leader is
expected to bring in more U.S. e-commerce sales in 2021 than
the next nine biggest U.S. retailers combined.3
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10 CONSUMERS PREFER E-MARKETPLACES OVER BRAND AND RETAILER WEBSITES
Walmart has also shown significant growth, with 63% of Meanwhile, only 27% of consumers surveyed said they buy
consumers saying they now purchase products from the products on retailer websites, down from 38% in 2019, while
company, in addition to Amazon, up from 51% in 2019. 23% of consumers said they make purchases on brand websites,
Target.com is attracting online shoppers as well, with 33% of up slightly from 21% in 2019. The growth of e-marketplaces like
consumers surveyed saying they purchase products from the Amazon and Walmart is leading to declining sales for retailers
site in addition to Amazon. Target’s online sales have surged like Best Buy, which is expected to be the only top retailer in the
since 2019, up 175%, and is expected to hit $18 billion in U.S. U.S. to see a drop in e-commerce sales this year.2 Additionally,
e-commerce sales this year.1 eBay.com is sliding in popularity as well, with only 32% of
consumers surveyed saying they buy products on the platform,
down from 38% in 2019.
1 eMarketer, 2021
2 eMarketer, 2021
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90%
Amazon’s Customer Service Drives Shopper of consumers are
satisfied with Amazon's
Retention
customer service
Customer service has always been a factor in consumer A driving force behind Amazon’s continued success is its ability
purchasing decisions, but lately it has had a much larger to satisfy shoppers through its customer service experience.
influence with 50% of consumers saying they’d switch to Amazon cultivates high retention rates by providing streamlined
a new brand after one bad experience.1 processes and quickly addressing any issues that may come up.
Order replenishment/subscription
service options (i.e. Subscribe & Save)
1 Zendesk, 2020
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12 CUSTOMER EXPERIENCE AND EXPECTATIONS GOING FORWARD
It is no surprise then that Amazon’s Prime membership is up As the king of customer centricity, Amazon curates the shopping
from 55% in 2019 to 72%, bringing shopper loyalty to an all-time journey to make the entire experience as seamless as possible.
high. Prime members are a proven, high-value customer base Retailers and brands can benefit from this approach by ensuring
that are critical to reach since they shop online more often, their content and advertising are integral to this journey. This
purchase from Amazon more often (69% of consumers have means authoring their product features and benefits responsive
purchased a product on Amazon in the last two months), and to customer searches through advanced keyword targeting and
spend more money compared to non-Prime members (57% of keeping content aligned with customer needs at that stage.
Prime members spend up to $100 per month on Amazon). Amazon businesses should test personalized promotions,
using customized discounts and incentives to further enhance
shopper’s experiences.1
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95%
of consumers are satisfied
with the relevancy of
Amazon's search results
99%
of consumers are satisfied
with the assortment of
products on Amazon
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The growth in online sales around apparel and beauty products 49% Beauty & Personal Care
is aided by brands’ and retailers’ adoption of interactive
shopping features such as augmented reality (AR), virtual
40% Home & Kitchen
reality (VR), and livestreaming content featuring influencers.
Many brands and retailers are now investing in more ways to
test out products from afar, as consumers are increasingly 37% Electronics
purchasing products without the need to feel them or try them
on.1
37% Grocery & Gourmet Food
1 eMarketer, 2021
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15 APPAREL, BEAUTY AND PERSONAL CARE PRODUCTS ACCOUNT FOR MOST ONLINE PURCHASES
1 eMarketer, 2021
2 eMarketer, 2021
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46%
by offering rapid delivery options, simplified smart check out,
convenient one click reorder, ensuring the best product prices
on its platform and much more.
increase from
2019-2020 Amazon’s grocery offerings have benefited significantly in the
wake of the pandemic too, showing steady growth that has
catapulted Amazon into being one of the leading U.S. grocery
websites over competitors like Instacart and Kroger.1 11% of
consumers surveyed said that they always buy groceries on
Amazon, up from 6% in 2019, while 16% of consumers frequently
or often buy groceries on the platform, up from 9% in 2019.
1 eMarketer, 2021
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41%
of consumers always read product reviews before
making a purchase on Amazon.
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47%
of consumers say that being a member of a loyalty
program influences where they go to make purchases.
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19 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?
Members by Gender
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20 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?
49%
of consumers aged 27-40 always or frequently/often buy
the first product listed on an Amazon SERP.
67%
When it comes to Amazon, advertising is the leading force that
guides the shopper journey, with the most ad spend directed
towards Sponsored Products results in search. Securing ad
placement above the fold on the first page of search results,
ideally in the top product slot, is increasingly important, as the
of consumers
survey revealed 28% of shoppers always or often buy the first
typically scroll to the
product listed on an Amazon SERP, with that figure climbing to
bottom of the page
49% for shoppers aged 27-40. Additionally, more than half (55%)
of shoppers notice ads on a search results page, while 50% of
shoppers notice ads on product detail pages (PDP).
For those who can not secure above the fold placement, the
survey revealed a majority of consumers (67%) scroll to the end
of search results on a page, so their products will still be viewed
by a majority of consumers
Take your Amazon advertising results to the next level with the
1 Marketplace Pulse, 2021 power of Feedvisor360. Learn more at feedvisor.com/connect
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21 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?
Take your Amazon advertising results to the next level with the
1 Marketplace Pulse, 2021 power of Feedvisor360. Learn more at feedvisor.com/connect
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E-commerce advertising has grown by 49.8% due to the Out of Amazon’s array of advertising offerings, Sponsored
pandemic, as brands and sellers are seeing significant products are particularly powerful at driving consumers to
sales growth thanks to their accelerated adoption of these make purchases. According to the survey, 30% of consumers
digital advertising channels.1 have clicked on the area for Sponsored Products related to
that item on a PDP, up from 26% in 2019. Meanwhile, 45% of
Personalized ads that offer relevant recommendations are consumers have clicked on a PDP’s section for Frequently
proving to resonate best with consumers, with paid ads offering bought together items, while 35% of consumers have clicked
more personalization features now than ever before. items other customers buy after viewing that item.
1 eMarketer, 2021
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23 SPONSORED PRODUCT RECOMMENDATIONS DRIVE CONSUMER PURCHASES
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1 Price (44%)
78%
of consumers said price is the most important factor
when selecting a product.
2 Image (25%)
3 Title (10%)
5 Ratings (9%)
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1 eMarketer, 2021
2 Feedvisor Proprietary Customer Data, 2020
3 Feedvisor Proprietary Customer Data, 2021
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Consumers Only Had Eyes for Amazon Deals During Prime Day
57%
of shoppers were not aware of competing Prime Day As these events continue to grow in scope and scale,
promotions from other retailers. brands and retailers should consider how to optimize their
strategies for maximizing their Prime Day results both on
and off Amazon. Creating a holistic customer journey
To capitalize on the rising popularity of Amazon’s Prime Day over
that keeps their products front and center in this highly
the years, many retail competitors like Walmart, Target, and Best
promotional and competitive period is crucial.
Buy run their own promotional events at the same time in hopes
of capturing consumers’ attention and increasing digital traffic
through similarly attractive deals and discounts on items.1
This competitive strategy has not had as big of an impact on Consumers who participated in other brand sales on
shoppers as most of these companies might have hoped, as Prime Day
the survey revealed that the majority (57%) of consumers were
completely unaware that competing Prime Day promotions
from other retailers were even going on. Of those that did take
advantage of competitors’ events, 25% of consumers shopped
at Walmart Deals for Days, 16% of consumers shopped at Target
Deal Days, while 13% of consumers took part in Best Buy Bigger
Deal Savings.
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51% According to the survey, 60% of consumers shop for deals and
discounts during annual holiday events like Black Friday and
plan to make a purchase during Black Friday. Cyber Monday, while 47% of consumers wait until these key
dates to make a big purchase.
The importance of Q4 and the holiday season cannot be
understated for brands and retailers on Amazon, with these In particular, this year’s Cyber 5, or rather, the period between
critical dates and online events playing major roles in influencing Thanksgiving and Cyber Monday, is proving to be the time
consumers’ shopping decisions. when the majority of consumers will make purchases. Black
Friday continues to dominate as the most popular annual
shopping event across all age groups as 47% of consumers
Online events consumers plan to make a purchase during say the best deals are on Black Friday and 51% claim they will
make a purchase on Black Friday. Cyber Monday is still just
as important with 46% of consumers also planning to shop on
this sales day. Additionally, 23% of consumers plan to shop on
Thanksgiving this year.
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29 HOLIDAY EVENTS DICTATE SHOPPING BEHAVIOR
To accommodate both shoppers’ holiday buying behaviors and Additionally, as uncertainty looms over supply chain issues,
the ongoing limitations imposed by the pandemic, many big consumers are being encouraged to shop for the holidays
retailers are altering their 2021 strategies, with health and safety as early as possible. While deals may be amazing during the
at the forefront. Several major retailers plan to close their in- Cyber 5, the likelihood of receiving the gift for the holidays is
person shopping on traditionally busy days like Thanksgiving highly unlikely. Retailers and brands should follow Amazon’s
and Black Friday this year, which will likely encourage consumers lead by offering “Black Friday-worthy deals” well in advance of
to shop more online during these key dates instead.1 the actual holiday in order to ensure products are received by
consumers.2
Holidays that have the best deals Online events where purchases are typically made
1 eMarketer, 2021
2 CNN, 2021
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The survey revealed that more than half (53%) of consumers Top 3 destinations for last minute holiday gifts
purchase last-minute holiday gifts from Amazon, while
25% go to Walmart and 7% go to Target to make these
purchases.
1
Allocation of Holiday Budget for Amazon
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Looking Ahead
While returning to pre-pandemic behaviors remains a Voice shopping is also garnering popularity for the convenience
hopeful yet uncertain goal for many, what is clear is that of telling a smart speaker device what is needed or wanted and
Amazon will continue to grow regardless of what the future that product being added to a list or purchased on the spot.
holds over the coming year. According to forecasts by More and more consumers are using voice shopping daily with
eMarketer, Amazon will amass more than $463 billion in 55% of households expected to own smart speaker devices by
2022.4
U.S. e-commerce sales by the end of 2022, further proof
that the shift towards digital shopping is here to stay.1
Beyond convenience-related trends, the introduction of
cryptocurrency and blockchain is set to take over the
As outlined in the report, customer retention and loyalty
e-commerce landscape. This technology will potentially affect
programs will play increasingly important roles in driving
online shopping in nearly endless ways, including giving
engagement and maintaining shoppers’ interest, while new
consumers more payment options and creating more secure
formats and channels like social commerce are also rapidly
and decentralized databases. It also has the opportunity to
evolving. In particular, livestreaming is growing in popularity and
sell digital products in the form of non-fungible tokens (NFT).
importance, with China’s market already showing significant
Amazon is already reportedly dabbling in the cryptocurrency
interest as the country’s e-commerce livestreaming offerings
space, and it will be interesting to see how Amazon integrates
are expected to grow by 85% this year after experiencing 160%
this type of technology into its already massive collection of
growth the year prior, bringing in nearly $300 billion in sales.2
services and digital offerings.
Other trends gaining traction are those that enhance the buying
As innovations and rules for both online and in-person
experience from the comfort of consumers’ homes, such as
shopping evolve in scope and complexity to meet the needs
augmented reality and voice shopping. Augmented reality
of today’s retail environment, brands and retailers must stay
in particular gives shoppers the ability to see how products
one step ahead so they can consistently provide consumers
look on similar body types, or in their homes, and reduces the
with seamless experiences on Amazon and other essential
impulse to buy multiple items. This could significantly minimize
e-marketplaces. This is why businesses operating across the
the headache of returns for both the consumer and retailer.
e-commerce landscape need to rely on AI-powered technology
Additionally, augmented reality users are expected to hit 3.5
and holistic optimization strategies that continually adapt
billion by 2025.3
to meet their goals while growing relationships with crucial
customers and prospects.
1 eMarketer, 2021
2 eMarketer, 2021
3 Techjury, 2021
Dani Nadel
4 Invoca, 2021 President and Chief Operating Officer, Feedvisor
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