Feedvisor, the “AI-first” optimization and intelligence platform for brands and retailers on Amazon, Walmart, and e-marketplaces, today released the findings of its 2022 Amazon Consumer Behavior Report. The report, which is based on a survey of over 2,000 consumers, explores the changing behaviors and trends shaping e-commerce. The survey reveals how consumers are using Amazon to shop for products and services, and what influences their spending habits in these uncertain, challenging times.
“One of the leading forces influencing consumer behavior today is the current economic climate,” said Dani Nadel, President and COO, Feedvisor. “Surging energy prices, elevated food costs, and continuing supply constraints remain top concerns facing consumers, creating a tension between a desire to purchase what they want and a need to compromise due to budgetary pressures,” says Nadel. “Brands and retailers increasingly need to adapt to earn their business, especially as consumers are more willing to trade down and try new brands in exchange for increased value.”
Some key findings from Feedvisor’s 2022 Amazon Consumer Behavior Report are below:
Despite Inflation and other economic pressures, consumers are shopping more frequently, but their decisions are more influenced by price and budget realities.
- Nearly 50% of respondents reported an increase in online purchases when compared to in-store, with Amazon being their first stop.
- One of the report’s most compelling findings is that purchasing motivation is largely influenced by inflation, with 54% of shoppers stating this is a key factor in their decisions. Consumers are also making decisions based on where the deals and discounts are (45%) and their budget constraints (33%).
In choosing products today, consumer focus is on price and value, rather than familiarity with the brand.
- The survey reveals that for 66% of consumers, they remain open to purchasing private labels vs brand names, with about half of them saying it depends on the product.
- A majority of consumers are more likely to purchase Amazon private labels (76%) possibly because of Amazon’s attention to quality for their private label products so they match that of the brand name products they are mimicking.
Advancements in technology are enhancing the retail experience and being leveraged to facilitate the buyer journey.
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- One third of survey respondents reported using the new technology enhancements, including augmented reality, flexible payment options and purchasing within games, while an additional 1/3 of consumers anticipate using them in the future.
- Voice search is also picking up as the survey indicates 44% of shoppers say they use voice assistants to make a purchase.
Consumers expect to be able to shop in-the-moment, with 52% of consumers having made a purchase from social media in the past 6 months.
- Influencers are now an integral part of brand strategies; For example, 37% of consumers have made a purchase after seeing Amazon influencers talk about or recommend them.
Memberships and subscriptions are on the rise with Amazon Prime memberships at an all-time high, up 20% since 2019, yet most consumers have more than one membership beside Prime as they seek to exploit greater deals and discounts.
- Popular additional memberships include Walmart+ (35%), Costco (30%) and Target Circle (25%).
Consumers simply want to click instead of think, making advertising, especially on Amazon, a key driver of engagement and sales:
- Sponsored ads are still a key driver for product sales, as 38% of consumers find them helpful, up 7% year over year
- 70% of shoppers said they purchase the first product listed on the Amazon search results page.
- Amazon continues to be the first place consumers look for product information, with 75% of consumers saying they check prices and product reviews on Amazon before making a purchase.
Additionally, as summer is nearing the transition to fall holiday shopping is already underway.
- As many as 15% of consumers used Prime Day to kick off their gift purchases, while almost half of consumers are planning on beginning in October and November.
- Despite earlier holiday shopping, consumers still view the holidays as the best time to score deals: 58% of consumers say they shop for deals and discounts during Black Friday and Cyber Monday and 38% of consumers say they wait to make a big purchase until one of these events.
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