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2021 Consumer Behavior Report

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342 views32 pages

2021 Consumer Behavior Report

Flipkart

Uploaded by

S SURAJ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The 2021 Amazon Consumer Behavior Report:

Based on a Survey of 2,000+ U.S. Shoppers


2

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.

To win in this era, especially on Amazon and other e-marketplaces,


brands and retailers will need to take a hard look at factors that
drive consumers to make a purchase, paying close attention to
personalization, convenience, value, and product assortment.

In its fourth installation, The 2021 Amazon Consumer Behavior


Report provides a comprehensive and detailed view into the
minds and wallets of over 2,000 U.S. consumers. This report
includes the impact of Covid-19 on consumers’ buying habits and
the evolution of their online media consumption and shopping Explore this in-depth report to find out exactly what brands
behaviors, with comparisons to pre-pandemic statistics. and retailers need to know about consumer behaviors, their
most important needs, as well as effective strategies for how
Asked about their shopping motivations and tendencies, to leverage Amazon and e-marketplaces to identify and act on
consumers offered a wide range of thoughts on topics like key high-value opportunities.
which categories they are buying from, how loyalty programs like
Prime membership and Walmart+ influence their purchasing
decisions, plus insights into their upcoming holiday shopping
plans for Black Friday, Cyber Monday and beyond. Dani Nadel
President and Chief Operating Officer, Feedvisor

© F E E DV I S O R
3

TABLE OF CONTENTS

Methodology & Demographics


METHODOLOGY AND DEMOGRAPHICS 3

This poll was commissioned and analyzed by Feedvisor. KEY TAKEAWAYS 4


It was distributed online from July 13–16, 2021, among
a sample of 2,003 U.S. adults who have purchased a THE EXPANDED ROLE OF AMAZON AND 5
product on Amazon within the last 24 months. Results E-COMMERCE MARKETPLACES
from the full survey have a margin of error of plus or minus
2.2 percentage points. All numbers have been rounded THE "NEW" CUSTOMER EXPERIENCE AND 11
to the nearest percent. Zogby Analytics conducted the EXPECTATIONS MOVING FORWARD
survey on behalf of Feedvisor.
BRANDS AND ADVERTISING SENTIMENT: 18
The respondent pool encompassed all age ranges and WHAT’S WORKING?
income levels as well as Prime and non-Prime members
to provide a true snapshot of what the overall market PRIME DAY AND UPCOMING HOLIDAY 26
wants from retail experiences. TRENDS

LOOKING AHEAD 31

© F E E DV©I SFOERE DV I S O R F E E DV I S O R.C O M


4

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.

To optimize your end-to-end e-commerce strategy,


get in touch with us at feedvisor.com/connect

© F E E DV I S O R
5

The Expanded Role of Amazon and E-Commerce Marketplaces


Consumers' Digital-First Behavior Is Here to Stay 64%
of Prime members and 36% of non-Prime members said
they now shop more online than they did prior to the start
The ongoing impact of the Covid-19 pandemic has undoubtedly of the pandemic.
accelerated consumer adoption of online shopping, especially
as brick-and-mortar retail faces ever-evolving social-distancing
protocols, fluctuating inventory in-store and limited hours of
operation due to staffing constraints. 53%
of consumers buy products online at least once per
The survey shows that Amazon and e-marketplaces week, with 9% of consumers making purchases on a
continue to play a growing role in the lives of shoppers, daily or nearly daily basis.
with more than half of consumers (57%) revealing that they
do more online shopping now than before the pandemic.
In particular, 64% of Prime members and 36% of non-Prime
Consumers are shopping more online than in-store members said they now shop more online than they did prior
to the start of the pandemic. Additionally, more than half of
consumers (53%) said they currently buy products online at least
once a week, up from 48% in 2019, with 9% saying they make
online purchases every day or almost every day. It is increasingly
evident that, even as retail restrictions lift and loosen in certain
37% parts of the U.S., the growth of online shopping continues to
57% accelerate at a rapid pace.

Overall, U.S. e-commerce sales are projected to continue seeing


6%
double-digit growth, up nearly 17.9% in 2021 to over $933 billion,
and expected to surpass $1 trillion in 2022. Poised to sustain
this growth in the years ahead, e-commerce is on track to
account for over 20% of total U.S. retail sales by 2024.1 Clearly,
consumers’ digital-first behavior is here to stay.

1 eMarketer, 2021 Shopping more


Shopping the same
© F E E DV I S O R In-store more
6

Amazon Is at the Center of Online Shopping Habits

56% As a result, Amazon is expected to account for 41.4% of all U.S.


retail e-commerce sales in 2021 and will make up more than
of consumers visit Amazon daily or at least a few 50% of U.S. growth in online sales from 2019 to 2021. Amazon’s
times a week, up from 47% in 2019. e-commerce sales are projected to rise by $168.53 billion in
that time frame as well, reaching more than $386 billion by the
end of this year.1
As consumers’ comfortability and reliance on e-marketplaces
accelerates amid the pandemic, Amazon has emerged as the
biggest beneficiary from the growing trend towards online
shopping. Focused on providing convenience and offering a Consumers visiting Amazon daily or nearly daily
vast assortment of products and brands, as well as attractive
loyalty program benefits like exclusive deals and faster shipping
times for Prime members, Amazon continues to position itself
as an integral component to many aspects of consumers’ day-
to-day lives.

47%
of consumers make a
purchase on Amazon
at least once a week

Members visiting Amazon daily or nearly daily


in 2020
Not only are consumers visiting Amazon more often, but they
are also increasingly converting and making purchases on the
platform. The survey reveals that 47% of overall consumers 40%
make a purchase on Amazon at least once a week, with 8% of
respondents saying they make a purchase on Amazon daily or Non-Prime 16%
almost every day. In addition, 10% of current Prime members
buy a product on Amazon on a daily or nearly daily basis.

1 eMarketer, 2021

© F E E DV I S O R
7

Consumers Use Amazon for Every Stage of the Buyer Journey


Amazon is now an essential resource that consumers increasingly While Google has reigned as the leading search engine ever
rely on at every stage of their buying journeys, from searching for since its inception in 1997, the survey reveals that 62% of
new products and checking prices to scanning product reviews consumers now begin their search for new products on Amazon,
and, ultimately, conversion to making a purchase. while only 18% of consumers went to Google. Walmart continues
to gain ground in this area, as 10% of consumers say they start
their search for new products via the growing e-marketplace.

Top 3 destinations where consumers Top 3 destinations where consumers


start their search for new products: go when ready to buy a product:

62% 71%
18% 10%
10% 7%

© F E E DV I S O R
8 CONSUMERS USE AMAZON FOR EVERY STAGE OF BUYER JOURNEY

Consumers Are Doing Their Research on


Price and Reviews
More and more consumers are looking for the best deal, Combined with the convenient and efficient shopping
especially when it comes to price. They aren’t afraid to do a little experience that’s difficult to match, it’s no surprise then that 71%
research and are choosing Amazon as their go-to resource. The of consumers also go straight to Amazon when they are ready
survey reveals 76% of consumers check prices on Amazon, and to buy a product, with only 10% of consumers going directly to
74% check Amazon product reviews before making a purchase. Walmart and just 7% of consumers going to search engines.

Where consumers check prices before making a purchase Where consumers check product reviews prior to making
a purchase

© F E E DV I S O R
9

Consumers Prefer E-Marketplaces Over Brand


and Retailer Websites

The evolution of the e-commerce landscape has given way to


e-marketplaces establishing dominance, outpacing all other
channels by offering consumers a more convenient shopping
experience to discover, compare, and purchase a variety of
products. E-marketplaces are also sought after because they
help shoppers find the most competitive prices on the best
quality products, with access to an array of brands on just a
single platform. In fact, US retail ecommerce sales are expected
to grow 13.7%, reaching $908.73 billion in 2021. Prior to the
pandemic, it was expected sales would grow just 12.8%.1

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

1 Insider Intelligence, 2021


2 Digital Commerce 360, 2021
3 eMarketer, 2021

© F E E DV I S O R
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.

Other websites, aside from Amazon, that consumers use to


buy products

1 eMarketer, 2021
2 eMarketer, 2021

© F E E DV I S O R
11

The "New" Customer Experience and


Expectations Moving Forward

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.

According to the survey, 90% of consumers are satisfied with


Amazon’s customer service, with 33% of respondents citing the
company’s rapid response to complaints and order issues as the
Best Parts of Amazon's Customer Service best part of Amazon’s customer service experience. Meanwhile,
21% of consumers enjoy Amazon’s streamlined checkout
Rapid response to process, while 19% of consumers say that having access to
complaints/order issues
multiple delivery options is the highlight of the company’s
Streamlined checkout process
(shipping, billing details auto-filled
customer service.

Refunds processed before


item is returned

Flexible/convenient return policy

Multiple delivery options (next-day,


two-day, Amazon Day, no rush, etc.)

Order replenishment/subscription
service options (i.e. Subscribe & Save)

1 Zendesk, 2020

© F E E DV I S O R
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

How much, on average, Prime Members spend on Amazon each month

1 Feedvisor, Proprietary Data, 2021

© F E E DV I S O R
13

Shoppers Want an Assortment of Quality Products

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

Beyond customer service, consumers are also impressed


with Amazon’s powerful search algorithm and collection of
quality product offerings. According to the survey, 99% of
consumers said that they are satisfied or highly satisfied with
Amazon’s assortment of products, while 95% of consumers
are satisfied or highly satisfied with the relevancy of Amazon’s
search results when looking for products on the platform. By
quickly connecting customers with quality items that meet or
exceed their product search expectations, Amazon makes the
shopping journey both simple and seamless for consumers.

© F E E DV I S O R
14

Apparel, Beauty and Personal Care Products Account for


Most Online Purchases
Over the course of the pandemic, consumers have shifted
their purchases from “essential” categories around health and
household products to more discretionary items. Historically Top 5 categories consumers are making online
slower to grow online, apparel has particularly benefited purchases of the most:
from consumers’ newfound digital-first behavior, with the
survey revealing that 60% of consumers make the most online
purchases in the Clothing, Shoes, and Jewelry category, while
49% of consumers purchase the most in the Beauty and 60% Clothing, Shoes and Jewelry
Personal Care category.

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

© F E E DV I S O R
15 APPAREL, BEAUTY AND PERSONAL CARE PRODUCTS ACCOUNT FOR MOST ONLINE PURCHASES

Although online is growing rapidly, there is still demand and


interest around in-person shopping, proving that the future is
omnichannel. While e-commerce sales are projected to see a Top 5 categories consumers plan to buy more
moderate 13.7% growth this year, brick-and-mortar retail sales of in physical stores
are expected to rebound from a 0.2% decline in 2020 to a
2.2% gain in 2021.1 According to the survey, 47% of consumers
plan to buy more products in the Grocery and Gourmet Food
category at physical stores, while 41% of consumers plan to 47% Grocery & Gourmet Food
buy more items in the Clothing, Shoes, and Jewelry category
in person.
41% Clothing, Shoes and Jewelry

Brands and retailers must cultivate a seamless integration


of both their online and offline experiences, focusing on
34% Beauty and Personal Care
innovation and modified store experiences that feature
digitally integrated, frictionless shopping with atmospherics
modified to accommodate the “new normal” of sanitization 27% Home and Kitchen
and social distancing.2

22% Pet Supplies

1 eMarketer, 2021
2 eMarketer, 2021

© F E E DV I S O R
16

Price and Convenience Are Consumers’ Top Priorities


When Online Shopping

28% What matters most to consumers


of consumers say lower prices matter the most when
shopping online. when shopping online

Given the economic, societal, and physical repercussions of


the pandemic, many consumers have a heightened focus on 28% Lower prices 25% Convenience
convenient, personalized shopping experiences and budget-
friendly items. According to the survey, 28% of consumers say
lower prices matter the most when shopping online, while 25%
of consumers say convenience is the most important factor. 11% 10%
Good customer Free shipping
service
Overall spend on online groceries

It is clear that price and convenience mean the most to online


shoppers, which is why Amazon focuses on meeting these needs

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

© F E E DV I S O R
17

Fake Reviews Are Consumers’ Top Concern on Amazon


In the age where social proof and e-commerce frequently While Amazon is increasingly taking actions to remove
converge, maintaining a strong, credible reputation is essential. thousands of sellers and fake reviews from its platform, including
With consumers absorbing information across a variety of a major crackdown on hundreds of top Chinese sellers who
channels and touchpoints, they are constantly making more violated Amazon policies,1 fake reviews remain a top concern
informed purchase decisions. According to the survey, 41% for consumers. Brands and retailers need to ensure they are
of consumers always read product reviews before making employing the proper reputation management strategies,
a purchase on Amazon, while 38% of consumers often read maintaining healthy ratings and positive reviews by proactively
reviews prior to purchasing on the platform. But the prevalence working to improve feedback scores.2
of fake reviews is eroding trust as the survey reveals only 31%
of consumers strongly agree with the statement “I trust the
reviews on Amazon product listings,” which is down slightly
from 33% in 2019.

41%
of consumers always read product reviews before
making a purchase on Amazon.

1 Marketplace Pulse, 2021


2 Feedvisor Proprietary Data, 2021

© F E E DV I S O R
18

Brands and Advertising Sentiment: What’s Working?


Memberships Influence Shopper Loyalty

47%
of consumers say that being a member of a loyalty
program influences where they go to make purchases.

In the wake of the pandemic, loyalty program influence on


shopper behavior has been magnified, as homebound shoppers
attracted to the convenient shipping benefits and wealth of
additional features have steadily adopted and even welcomed
loyalty memberships. According to our survey, 47% of consumers
say that being a member of a loyalty program influences where Memberships to both Amazon’s Prime and Walmart+ have risen
they go to make purchases. However, 44% of consumers say in the wake of the pandemic. In fact, Amazon Prime membership
that being a member does not influence their purchasing is up 17% since 2019, and Walmart+ membership is up 18% from
decisions, while 8% are unsure. When looking at age groups, 2020.1
this number widens as younger generations (consumers aged
18-40) are more heavily influenced to purchase where they have While each offers similar services, currently, Amazon’s annual
a membership than consumers aged 41+. loyalty program costs $119 a year and boasts free same-day
and two-day shipping, a growing streaming library of video and
music content, exclusive in-store deals at Whole Foods, free
audiobook and magazine downloads, and more.
56% of consumers aged 18-40 are more likely to
make a purchase where their memberships are Conversely, Walmart+ is available at a slightly lower price point
of $98 a year or $12.95 per month and offers less exclusive
39% of consumers aged 41+ are more likely to offerings than Prime but matches the free next-day and two-
make a purchase where their memberships are day shipping. Walmart+ members can also expect to enjoy other
perks such as grocery deliveries, fuel discounts, and access to
a specific mobile app for easy in-store shopping.

1 Feedvisor Proprietary Consumer Data, 2020

© F E E DV I S O R
19 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?

Other Memberships Gaining Popularity Loyalty Program Membership

Looking at other programs, only 16% of consumers currently use


Target Circle, and membership skews towards females. Target
Circle, which replaced Target Cartwheel, offers some savings
for non-RedCard purchases, a birthday discount, community
support, and access to hundreds of deals and promotions.
Additionally, 16% of consumers use Costco, but membership
is skewed more towards males than females. Costco members
enjoy reduced gas prices, travel options, discounts and
promotions, and depending on membership, an annual reward
on qualifying purchases.

Members by Gender

Prime: 73% male vs. 71% female

Walmart+: 32% male vs. 28% female

Target Circle: 20% female vs. 12% male

Costco: 17% male vs. 15% female

© F E E DV I S O R
20 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?

Amazon Ads Are Resonating With


Shoppers’ Needs

In today's competitive e-marketplace landscape, advertising


has become a critical factor as part of strategies for demand
and profitable growth, supplanting the importance placed
on traditional product recommendations and personalization
efforts.1

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

© F E E DV I S O R
21 BRANDS AND ADVERTISING SENTIMENT: WHAT'S WORKING?

The increased investment in Sponsored Products and other


advertising methods has caused cost-per-click (CPC) and ad
spend as a whole to rise year-over-year since more brands are
seeking out Amazon to showcase their messaging and connect
with shoppers. CPC for Amazon ads in the U.S. rose to $1.20 in
2021, up over 50% year-over-year, while average advertising cost
of sale (ACoS) has risen from 22% in 2020 to over 30% this year.1

Brands and sellers on Amazon need to have the right advertising


optimization technology in place to ensure their strategies
can intelligently drive demand and profit in accordance with
business goals. The key is using data-driven, AI-powered
technology that can help you optimize your advertising budget
to achieve specific business objectives using messaging that
truly resonates with the needs of today’s shoppers.

Take your Amazon advertising results to the next level with the
1 Marketplace Pulse, 2021 power of Feedvisor360. Learn more at feedvisor.com/connect

© F E E DV I S O R
22

Sponsored Product Recommendations


Drive Consumer Purchases

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.

Types of suggested items that are clicked on from an Amazon


product detail page

1 eMarketer, 2021

© F E E DV I S O R
23 SPONSORED PRODUCT RECOMMENDATIONS DRIVE CONSUMER PURCHASES

Although consumers are more aware of digital advertising these


days, many shoppers do find them helpful. 31% of consumers
said that sponsored ads within search results are helpful, up
significantly from 20% in 2019. Only 20% of consumers said that
these types of ads were distracting, down from 25% in 2019.

With more shoppers clicking on Sponsored products related to


that item now compared to 2019, brands should utilize these ad
types to redirect traffic from competitors to their own product
listings, as well as target audiences that view products in their
category.

Consumers find Sponsored Ads helpful

© F E E DV I S O R
24

Price and Product Images Capture Shopper Attention in Search


The first step for prospective customers on Amazon often Having data-driven technology in place to optimize pricing is
entails putting keywords in the search bar and then scrolling essential for brands and sellers on Amazon, however, businesses
through an endless array of products. What piques their interest must also pay equal attention to the creation of their PDPs,
in clicking on a product and electing to purchase, comes down which Amazon organizes its search functionality around. To
to similar details: price and imagery. According to the survey, increase discoverability, make sure your product listings feature
when browsing search results on Amazon and clicking on a accurate item information and organically placed keywords.
product, 44% of consumers said that price is the product detail They should also draw attention to any unique features while
that stands out the most to them while images came in second, offering a clear look at key benefits, which will help make the
with 26% of consumers saying a product’s photo stands out purchasing decisions easier for potential buyers.
most in Amazon search results.

As for the determining factors that lead shoppers to ultimately


select a product, price is once again king. 78% of consumers Product details that stand out the most
said that price is most important when choosing an item. when browsing Amazon search results
Additionally, 61% of consumers said low shipping cost was most
important, while 53% of consumers chose fast shipping time.

1 Price (44%)
78%
of consumers said price is the most important factor
when selecting a product.
2 Image (25%)

3 Title (10%)

4 Prime Eligibility (10%)

5 Ratings (9%)

© F E E DV I S O R
25

Brands Benefit from Pandemic with New Shoppers


The ever-changing nature of the pandemic inspired shoppers
to experiment, with many consumers buying from new brands 60%
for the first time. The survey revealed that 60% of consumers of consumers purchase from brands they had not
made a purchase from a brand that they never tried before, previously tried prior to the pandemic.
a testament to the immense opportunity businesses have to
reach new customers.

Additionally, half (50%) of consumers also strongly agreed


that they are satisfied with the number of brands that they
know on Amazon, up from 41% in 2019. Only 6% of consumers
were strongly or somewhat dissatisfied with Amazon’s brand
offerings, down from 9% in 2019, proving that the company’s
efforts to expand access to more brands are paying off.

The shift in consumers’ loyalty to brands amid the pandemic


affects customer retention strategies on e-marketplaces
much differently than it does for brick-and-mortar stores,
as they offer brands and retailers fewer opportunities to
directly engage with customers. Businesses on Amazon and
other e-marketplaces should cultivate customer retention by
creating seamless shopping journeys that foster engagement
and conversion, advertising campaigns that drive awareness,
as well as personalized promotional incentives that resonate
with consumers.

© F E E DV I S O R
26

Prime Day and Upcoming Holiday Trends


Prime Day Participation Appears Overwhelmingly, Prime membership status was a determining
factor behind participation in the 2021 event, as 55% of
To Be Waning
consumers who are current Prime members did make a purchase
during this year’s Prime Day, while 86% of consumers who are
not Prime members did not participate.
Since its launch, Prime Day has been a marquee event for
Amazon and its merchants, providing shoppers with noteworthy In general, Prime Day total sales increased by just 0.3% in
deals and discounts that drive interest. Typically held in the 2021 compared to 2020, while they grew 5.2% in 2020 versus
summer, Prime Day moved to October in 2020, coinciding with 2019.3 As for specific categories that shoppers gravitated
back-to-school season and the start of the holiday shopping towards during Prime Day 2021, 37% of consumers who made
season. However, the 2021 event took place in June, which a purchase bought an item in the Beauty and Personal Care
seemed to have a detrimental effect on Prime Day participation. category, while 33% made a purchase in the Clothing, Shoes,
and Jewelry category.
Even though the constantly shifting dates from year to year
make direct comparisons a bit difficult, Prime Day is starting
to show signs of reaching its peak as shoppers are becoming
less likely to make big purchases during the event.1 In 2020,
57% of consumers participated in Prime Day according to
Feedvisor’s holiday consumer survey.2 This year, however, only
43% of consumers made a purchase during Prime Day 2021,
while half (50%) of consumers did not.

1 eMarketer, 2021
2 Feedvisor Proprietary Customer Data, 2020
3 Feedvisor Proprietary Customer Data, 2021

© F E E DV I S O R
27

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.

Interestingly, the younger generation seems to be more


inclined to utilize promotions from other retailers. According
to the survey, only 37% of shoppers aged 27-40 were unaware
of competing promotions while 40% shopped at the Walmart
Deals for Days event.

1 Business Insider, 2021

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28

Holiday Events (BFCM) Dictate Shopping Behavior

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.

© F E E DV I S O R
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

© F E E DV I S O R
30

Amazon is the Top Destination for Last-Minute Gifts


Key shopping days like Black Friday and Cyber Monday have Even for those focused on serving the needs of last-minute
always been crucial for Amazon. However, these critical periods gift givers, brands and retailers need to prepare their holiday
are no longer contained to just single dates, with the recent strategies as soon as possible, optimizing ad campaigns,
shift in paradigm allowing holiday-related sales to now run product listings, promotions, and more to leverage the lead-up
throughout the month of November and well into the final days and lead-out period around Black Friday and Cyber Monday.
of December. By holistically optimizing your operations and holiday strategies
continuously and well in advance of key shopping dates, brands
As it gets later in the season, last-minute holiday gift offerings and retailers put themselves in the best position to drive demand
become more important, and Amazon is the leading destination and profits throughout the entirety of Q4.
for late Q4 shopping.

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

© F E E DV I S O R
31

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

© F E E DV I S O R
32

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