Amazon’s Prime Day 2018 saw shoppers participation multiply year-on-year, but customers now cross-check prices before committing to buy, says a new study.
Consumer partaking in the 36-hour sale event has increased by five times, with the highest growth of six times in the UK. But, despite the triumph, 62% of the global clientele are getting smarter by checking prices outside Amazon before purchasing, suggests the research from Periscope By McKinsey.
The analysis polled 500 consumer adults from France, Germany, Italy, the UK and 1,000 US shoppers to understand clienteles’ attitudes and behaviour during Amazon Prime Day 2018.
Looking specifically at spending, every country spent more than during the Prime Day 2017. The highest spike was in the UK where shoppers spent "a bit more" or "much more," this is closely followed by France (57%), Germany (54%), the US (41%) and Italy (39%). There are also signs of the US becoming more constrained in its spending as the top country where shoppers say that they "spend the same."
When it comes to consumers cross-checking prices, more than a half (62%) of the polled clients say that they check "a couple of" or "several" prices to see if they are getting the best deals by visiting rival retailer websites to evaluate product bargains encountered on Prime Day 2018. Shoppers in European countries were much more likely to check prices compared to their US counterparts, with France (44%) recording the highest number of consumers checking several prices before making a purchasing decision.
Conversely, consumers in the UK, US and Italy describe themselves as being "more planned" in their spending approach to Amazon Prime Day 2018. Whereas, 53% of questioned shoppers in France and 48% in Germany consider themselves to be "more spontaneous."
“There is no doubt that Amazon Prime Day keeps gaining in popularity with huge global awareness, and multiplying participation every year,” said Channie Mize, senior vice president and global sector general manager, Retail at Periscope By McKinsey.
She adds: “Shoppers are spending more at Prime Day but they are getting smarter, they are becoming increasingly price aware, and more willing to see what else is available elsewhere online."
While Amazon’s Prime is gaining momentum, it still has an online competition when it comes to other sale events.
Cyber Monday is widely regarded as the top named sale event, with 65% of US consumers and 44% of the rest surveyed respondent saying that they "participate." In Germany, MegaMonday is the most participated event (10%), but in the US (30%), UK (21%), Italy (9%) and France (8%) it is Free Shipping Day, which celebrates its 10th anniversary in 2018. The study suggests that the convenience of using a single marketplace, and low prices are not enough to keep shoppers from "other" places.
Channie Mize concludes: "It is a huge opportunity to Amazon, but other retailers should take heed that with the right sales initiatives and understanding of their customers, they can keep them loyal and coming back for more. But there still is a significant group of shoppers that like to shop spontaneously. Retailers should see this as an opportunity, using personalised marketing and messages to increase the chances of showing shoppers an ‘unexpected delight’ that they will want to buy.”
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