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According to a recent BigCommerce survey, 83% of US consumers (and 90% of millennials) made a purchase on Amazon. In fact, 49% of all online spending in the United States is done on Amazon, which represents about 5% of all US retail sales.
It seems that nothing can stop Amazon in its continued domination of retail. What's a small retailer to do? If you can not beat them, join them – or copy them – the BigCommerce report ends. Here's what the survey found on consumer buying behavior on Amazon and on the competitiveness of a small business.
Tips to overcome the Amazon effect
Concentrate on convenience
Some buyers are still using Amazon to find the lowest prices. But this is less common than in the past. Buyers surveyed say they no longer consider the price as the main reason for buying on Amazon, and not elsewhere. For 28% of respondents, convenience is the key factor.
The Amazon Prime membership offers customers the convenience of a two-day free shipping on their purchases. While the number of premium members continues to grow (last year, Amazon exceeded the 100 million Premium members worldwide), more and more consumers expect all retailers – not just those selling in the Amazon market – offer a similar level of convenience.
When asked what they preferred in online shopping, 18% of survey respondents cited shipping costs, while 15% said that they waited until the next day. The arrival of the product was the worst part of the e-commerce process.
How can you incorporate elements of the Amazon experience? Try to offer consumers the opportunity to buy online and pick up in stores. In this way, there are no shipping costs and customers can get their products faster.
Remember to make Amazon your partner
Amazon's vision as a 500-kilogram gorilla stealing sales from small retailers is out of date. In fact, Amazon's 2018 Small Business Impact Report states that 50% of Amazon's marketed products come from third party vendors. Last year, more than 20,000 of these third-party sellers made sales in excess of $ 1 million.
Rather than a competitor, Amazon may be an alternative sales channel for your business. Some 22% of consumers visited a brand's website before buying the brand's product on Amazon. If a buyer goes to your site but then buys your product on Amazon, should not he buy it from you via Amazon?
Use Amazon to drive traffic to your website
The BigCommerce survey revealed that three in 10 consumers had discovered a brand on Amazon before buying it on their own website. This is one more way for you to be present in the Amazon market.
Use Amazon to drive traffic to your Brick-and-Mortar store
When they were asked about their buying behaviors before making a purchase at a retail store, 32% of shoppers said they found a brand on Amazon and then found it. have purchased in a physical store. Why would that happen? Not being able to see, touch or try the products is the main complaint of buyers regarding online shopping, found BigCommerce. Consumers who discover your products on Amazon might want to check the merchandise before committing to a purchase.
Remember that physical stores always count
Despite the continued growth of e-commerce, approximately 87% of all retail purchases in the United States are still offline. Consumers spend more on physical stores than on the Internet. On average, survey respondents spend 69% of their discretionary income each month in the store.
In fact, retailers with both an e-commerce website and a virtual store have a competitive advantage over Amazon. Indeed, this combination of online and offline options offers consumers the widest range of choice when it comes to testing and buying products.
In addition, retailers with both physical and digital outlets are more likely to benefit from returns. Half of the buyers who return a product purchased online do so by mail. But among those who visit a physical store to return an item purchased online, more than two-thirds consult or buy that store after making the return. Authorizing offline returns from online shopping gives your retail business the best of both worlds.
How to overcome the Amazon effect? As this study suggests, the best way to do this is to stop fighting Amazon and adhere to what it can offer your business.
Image: Depositphotos.com
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