Report: Amazon Customer Satisfaction Hits All-Time Low

Amazon, eCommerce, retail

While Amazon still dominates the domestic eCommerce landscape, there are signs of growing discontent among its estimated 200+ million Amazon Prime members as customer satisfaction has reportedly reached a record low.

That’s according to a Monday (Nov. 21) Wall Street Journal report, citing data from the American Customer Satisfaction Index. Last year, Amazon dropped to a record low on the index — 78 out of 100 — the company’s worst showing since the group began tracking Amazon in 2000.

The Journal report also cites a survey by investment firm Evercore ISI showing that the number of Amazon customers who were “extremely” or “very satisfied” with the company had dipped to 79% this year. That number was even lower — 65% — during the pandemic, but has stayed below its peak of 88% nearly 10 years ago.

Amazon has not responded to PYMNTS’ request for comment on the report.

Recent research by PYMNTS shows that Amazon — whose shares have fallen roughly 50% since this time last year — continues to lead rival Walmart in overall consumer and retail spending, with Amazon commanding almost 45% of the U.S. eCommerce market in the second quarter of the year, compared to Walmart’s 5.4%.

Get the report: The Battle for Consumer Retail Spend: Amazon Versus Walmart Q2 2022: The Discretionary Spend Play

Amazon has continued to lead in non-essential spending, outpacing Walmart in an area that used to be ruled by big box behemoths like Sears.

“Perhaps because eCommerce retailers such as Amazon offer detailed product information and reviews, consumers can confidently buy durable goods online without having to visit physical stores to get that information,” PYMNTS wrote.

Amazon’s lead in the sporting goods, hobbies, music and books categories has held up as well. PYMNTS data shows that as of the fourth quarter of 2022, the company commands a 15% share of this segment, up somewhat from the same period in 2021, while Walmart has seen its share decline.

We also noted last week that the performance gap between the two retail giants had begun to change, following a week that began with Walmart being lauded for its strong results and Amazon announcing a wave of job cuts that could extend into next year.

“Said another way,” we wrote, “while the past 12 years have been dominated by shares of Amazon (+1100% vs + 150% for WMT), the past 12 months have been all about Walmart (+5% vs -45% AMZN).”

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