Well, there is no doubt that Amazon is a big fish in the online retail industry. Such is the impact of this 1994 born e-commerce venture that around 40% of people turn to Amazon, when purchasing products online. According to an online survey, 44% of 2,000 online shoppers admitted that they go directly to Amazon for inquiring or purchasing a product online. And if observations of 2012 Forrester Research study is to be taken seriously, 30% of the U.S online shoppers preferred to search on Amazon search platform compared to 13% who searched for products on other search engines.
However, the reason behind Amazon’s amazing online dominance cannot be attributed to its soaring popularity among the online shoppers as such but there’s more to it.
According to a new research by BloomReach, Amazon’s unique personalization of products across its platform makes it a tempting online shopping destination among the online shoppers. This is main reason why Amazon’s hurting online retailers to become the No.1 online shopping destination.
“That’s not exactly mind-blowing,” says Joelle Kaufman, head of marketing and partnerships at BloomReach. “We all knew Amazon was gaining in efficacy, but that’s pretty dramatic in three years.”
Amazon’s unique way of personalization not only separates it from other online retailers but also is a step towards enriching the online shopping experience. That’s why it has a major influence on almost three fourth of the online shopper community racing ahead of Walmart at 9% and 8% by eBay. Moreover, about 87% of 2,000 online shoppers admitted that retailer’s personalization style influences their purchasing decision.
But why personalization as such influences customer’s online purchasing behavior? This is mainly due to Google’s online tactics of ranking ahead sites with better consumer experience. This fact was opined by about 67% of the study respondents, who admitted website’s personalization style favoring Google searches had an impact on their purchasing decision. Moreover, the BloomReach study indicates that around 86% of the 500 online retailers feared the search giant’s predictive capabilities plays a significant role in online consumer’s website preference based on personalization.
According to Kaufman, “The consumer thinks, ‘I want [brands] to get it right because Google does. The consumer wants to do business with retailers that know them. We think there’s a real opportunity there for retailers to convey a deeper relationship by leveraging the ability to curate particular types of products, so the consumer comes and doesn’t get overwhelmed with choices.”
On the other hand, about 44% of the online retailers look upon Amazon as their biggest threat followed closely by 41% online marketers, who feel eBay as their biggest competitor.
Besides hurting the online retailers big time, Amazon also competes with the Google’s search platform with 30% of the online searchers preferring Amazon’s search platform. According to Eric Schmidt, Google’s former chief executive, “People don’t think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon.”
Moreover, Kaufman also credits the fact that since Amazon doesn’t have a physical store location that’s it’s crucial for it to ace the list of most preferred online shopping destination. That’s why the online retailers consider personalization as one of their top business priorities.
“You always wonder, ‘Is [personalization] creepy? Do people ignore it?'” says Kaufman. “I think people are so overwhelmed with choices and so pressed for time that the idea that you can curate a selection just for me is really powerful. It’s basically all the reasons I want to work with a merchant: helping me shorten that list of my choices and then presenting to me what I would like.”
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