Do Consumers Prefer Amazon Over Traditional Businesses?

Amazon’s popularity shows no sign of waning as its domination of the retail sector grows ever stronger. For many shoppers, it’s now the go-to place to pick up both essentials and luxuries.

So, what is it about Amazon compared to more traditional ecommerce websites that draws so many consumers in and gains their loyalty?

Amazon’s business model is very different. For a start, the thousands of products for sale on the platform are available from several different sellers – Amazon Marketplace sellers, big brands, and Amazon itself. As well as profiting from sales of Amazon own brand products, Amazon also collect a fee from sellers each time a product is sold.

From a consumer point of view, Amazon is a useful reference tool when shopping for something specific that they already know they want. They use the platform to check out the reviews and price of the product before deciding where to buy it from. This decision is often based on:

  • The overall price of the product
  • Product style/type availability
  • Delivery options (next day delivery with Prime membership vs pay a standard delivery fee/spend a certain amount to obtain free delivery on brand website)
  • Ease of purchase (sign up for an account on brand website vs use existing Amazon account)

Because Amazon has made it so quick and easy to find and buy a product, checkout can take mere seconds, consumers often buy from Amazon instead of other ecommerce websites even if it costs them more.

Many of Amazon’s regular shoppers have an Amazon Prime membership. It offers them a great deal, saving money on delivery costs and ensuring faster delivery. Membership also gives them access to free or discounted media such as films, TV series and music. So, it’s no surprise that 8 million users in the UK alone have signed up for the subscription.

If that weren’t enough to highlight Amazon’s strength and longevity, check out these statistics:

  • Amazon accounted for £4 of every £100 spent in retail in 2019
  • Amazon own the lion’s share (30%) of UK ecommerce
  • 86% of UK shoppers use Amazon
  • More product searches (54%) take place on Amazon than on Google (46%)

Are you a brand looking to tap into Amazon’s success? Contact our specialist team at Melody to discuss your project.

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