Gordon Haskett Report: Amazon Dominates E-Commerce, In-Store Remains Relevant

In eCommerce, Reports, What's New by Accessories Staff

Gordon Haskett: Amazon commands more online traffic than all other e-tailers combined.

In a new survey, Gordon Haskett analyst Chuck Grom dives into consumer spending habits for July 2017. His report reveals that Amazon owns the majority of online traffic (13.7% more purchases than all other e-commerce retailers combined), however in the fashion space, in-store remains relevant and social media plays a huge role in buying decisions.

Below, five major takeaways from the survey:

  1. Amazon is the clear leader online…In-store remains relevant: Amazon commands the majority of online traffic with an equal (or greater) share of household purchases when compared to all other e-commerce retailers combined. The biggest difference was once again in music, book and movie purchases where 28.8% of respondents said they made a purchase from Amazon in the last 30 days vs. just 15.2% who made a purchase on another site. In other words, Amazon garnered 13.7% more purchases in the category than all other e-commerce retailers combined. Also, worth noting, while apparel sales are split nearly evenly between in-store (54.3% of all sales) vs. online (45.7%). According to survey results, the percent of in-store sales increased sequentially every month since April, with 59.1% of clothing purchases in the last 30 days being made in-store.
  2. Amazon Prime membership holds steady at 50%: About half of participants surveyed have an Amazon prime membership, however Amazon Fresh and Amazon credit card usage declined in July.
  3. BUT Prime Is Far Less Appealing To Lower Income Households: According to survey data, even at a discounted rate, Amazon may have a difficult time driving incremental Prime membership in the lower income demographic. To this end, households with a total annual income below $40K were polled, and data found that ~80% of the group is not willing to pay the current $10.99 monthly Prime fee and would still not pay the lowered $5.99 rate available for households receiving government assistance.
  4. Consumers use Amazon for discretionary purchases more than non-discretionary: Amazon is the dominant e-commerce player, but consumers tend to use the online retailer for their discretionary purchases more than their basic needs.
  5. Consumers’ purchasing decisions are impacted by social media: According to survey results, about two-thirds of consumers visit a social media website more than once per day with 23.7% of respondents saying they check the sites “a few times a day” and 43.2% visiting “many times a day.” Furthermore, over half of survey takers use social media to research products they are considering purchasing, with 24.9% doing it occasionally and 25.5% frequently. The implication is that connectivity is increasingly important for today’s consumer, and the more ways in which a brand can interact with its customer, the higher the likelihood they can influence the customer at various points in their journey.
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