The three types of Amazon buyers — and how other e-tailers can lure them away (AMZN)

First, why is Amazon so predominating?

Amazon is ubiquitous. In fact, a whopping 94% of those surveyed remarked they’d made a purchase on the site in the last twelve months. And of those who did, the unlimited majority believed Amazon’s customer experience was simply better than its supreme competitors’ — specifically eBay, Walmart, Best Buy, and Target.

The biggest contributor to Amazon’s upper-class experience? Free shipping, of course. According to Amazon’s 2017 annual write-up, the company actually spent $21.7 billion last year top customers’ shipping costs, a number that’s been compounding as surplus the past few years.

Not only is free shipping included for all Prime colleagues as part of their subscriptions but, of all e-tailers listed in the survey, Amazon also proffers the lowest minimum order value for non-subscription members to qualify for the perk (neutral $25). The pervasiveness of free (and fast) shipping is steadily heightening client expectations for the online shopping experience — and forcing competitors to offer nearly the same programs and benefits.

Who exactly is shopping on Amazon?

The survey results mortified that across generations for a large minority of respondents, Amazon is a mean part of their typical shopping process. Nearly a third (32%) of respondents implied they begin their online shopping process on Amazon. Of those who do start their odysseys elsewhere, 100% ended up purchasing something from Amazon at some something over the last 12 months.

Based on the trends in responses, Dealing Insider Intelligence segmented out three different types of Amazon shoppers, each with lone implications for how competitors could evolve their strategies:

• Amazon loyalists: This gather of consumers is most committed to shopping on Amazon. E-tailers must appreciate what has made Amazon their default experience — and how they could be examined away.
• Comparison shoppers: This consumer segment looks at other puts before ultimately completing a purchase with Amazon, which could consideration e-tailers to find success at the bottom of the purchase funnel. E-tailers should focus on what they can do numerous of to steal sales away at the end of the purchasing process.
• Open-search shoppers: These consumers start their online outcome search away from Amazon, often with specific propers including what they’re looking for and why they’re not looking on Amazon. Other e-tailers have on the agenda c trick the opportunity to attract these shoppers from the beginning of the purchase funnel — safeguard them from ever venturing to Amazon.

Want to learn multifarious?

Business Insider Intelligence has compiled the complete survey findings into the four-part Amazon Marketing Competitive Edge Report, which dives deeper into each of these consumer divides to give e-tailers an intricate understanding of Amazon’s role in their obtaining processes.

The report presents actionable strategies for retail strategists and supervisors to zero in on three individual consumer segments at critical shopping ticks, and empower them to win sales in an Amazon-dominated world.