Consumer Insights

Retailers Struggle To Win Shoppers Away From Amazon

On demand marketplace

Conventional wisdom about online shopping says that the average consumer would rather test a product out in store before pulling the trigger and ordering it online. It hasn't been a very good year for conventional wisdom, though, and a recent Internet Retailer survey just poked a big hole in the aforementioned theory.

The survey, which asked 200 online shoppers about their purchasing habits, found that 65 percent of respondents have no qualms about ordering a product from a brand or retailer on an online marketplace, even if said company was completely new to them. Moreover, 72.8 percent reported buying a product on Amazon sold by a third-party lister.

While this may seem to encourage retailers that jump onto larger marketplaces, like Amazon, to try and siphon repeat buyers back to their own sites, Internet Retailer's subsequent data points aren't as glowing. Only 33.5 percent of shoppers navigated to a seller's native online marketplace after finding their products on Amazon. By comparison, 55.3 percent said that this is a thing they had not done, and a further 11.2 percent indicated that they couldn't remember, which doesn't bode well either way.

It's a mounting problem for retailers who acknowledge the importance of playing along nicely with the rest of Amazon's all-encompassing ecosystem, but David Escobar, senior manager of eCommerce for Bealls Inc., told Internet Retailer that trying to siphon loyal customers away from a company like Amazon that has perfected the art of convenience at nearly every step in the path to purchase is as close to a fool's errand as can be.

“These are Amazon’s customers, and they are lovers of Amazon," Escobar said. "They may try you once or twice, but you have to do a really good job to make them repeat customers."



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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