Web shoppers vote for price over brand
Online shoppers rate competitive pricing and free and fast delivery as more important than brand loyalty, according to new research by global e-commerce consultancy Salmon.
The survey of 3,500 people in the UK and US who shop online found that Amazon had been instrumental in raising consumers’ expectations of their online shopping experiences.
Eighty per cent of respondents said they checked Amazon reviews and prices even when they are shopping on other sites or standing on a shopfloor.
According to the survey, Amazon was the first port of call for UK and US shoppers (51 per cent) compared with just 16 per cent who chose Google.
Amazon accounts for 52 per cent of total online spend in the US and 35 per cent in the UK. The online giant’s biggest spend comes from digitally-savvy millennials – those aged between 22 and 37 – who are leading the way in adopting voice-activated shopping. Forty-four per cent are currently using voice assistants.
Patrick Munden, global head of retailing and marketing at Wunderman Commerce, which Salmon is a part of, said Amazon had become the “gold standard” for online selling, skewing customer expectations on price and delivery timescales with its PrimeNow one-hour delivery option.
The survey also revealed that there are growth opportunities for high-street retailers who offer more exciting in-store experiences,augmented by new technologies.
In the UK, 54 per cent of shoppers surveyed said that they felt more digitally advanced than some of the retailers and commerce services they use, while in the US, this number jumped to 76 per cent.
Of the younger respondents in both countries, 87 per cent said they would be more likely to shop somewhere that was digitally innovative.
Salmon said: “Thankfully for retailers, new technology doesn’t scare the consumer – on the contrary, shoppers seem to welcome a change from the traditional shopfloor.
“For example, 65 per cent of respondents told us they are more likely to buy from a store like Amazon Go, where facial recognition and other technologies have replaced the cashier.
“Clearly, people are happy to move away from the typical retail environment, towards something new.”
Commenting on the survey, information technology firm Fujitsu said it was a “mandate for transformation” for traditional retail.
“The way forward is highlighted by the growing consumer appetite for a technologically augmented shopping experience,” said Jat Sahi, digital lead for retail at Fujitsu.
“This is a huge opportunity for retailers to tap into the two key drivers of 21st century retail spending, convenience and experience. For example, connecting the consumer journey across mobile, desktop, and in-store can offer new ways to make shopping more seamless, while technology such as augmented reality can create a more immersive browsing experience.”