Can the Amazon Stranglehold on Shoppers Be Loosened Post-COVID? Survey Says: YES

Sitecore, the global leader in digital experience management software, reveals that 40% of U.S. shoppers would like to reduce the amount of shopping they do on Amazon.

Sitecore’s survey of over 2,000 U.S. consumers, conducted by global research specialists Advanis, reveals that 30% feel guilty after they’ve shopped on Amazon. Younger generations harbor significantly more buyers’ remorse about their Amazon purchases, with Gen Z most likely to feel guilty (43%), followed by Millennials (37%) and Gen X (34%). By contrast, 86% of Baby Boomers say that after shopping on Amazon they feel “pleased I got what I wanted. End of story.”

The top three reasons why shoppers are more likely to leave Amazon: receipt of low-quality goods (21%), better choice from other retailers (21%) and desire to support other retailers (12%). Leading attributes to pull consumers to non-Amazon retailers are: purchase incentives/discounts (38%), a similar (easy) purchase experience (42%) and same day delivery (25%).

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It is also more important to Gen Z that a brand pays its fair share of taxes and contributes to the economy, compared to older Americans (38% vs. 23%), and it is important that a brand’s labor practices are fair and it has a positive track record in job creation (40% vs. 24%).

However, at least for the time being, the results show that a guilty conscience is not enough to change consumer habits; over 68% of those surveyed are members of Amazon Prime. More than half of U.S. consumers (54%) surveyed say they typically go to Amazon first when shopping online, before checking search engine results.

Of all the generations, Gen Z shoppers were found to be the most eager to cut back on their Amazon shopping (53%), followed by Millennials (49%), Gen X (36%) and Baby Boomers (25%).

Considering more than a third (35%) of Gen Z, a massive 49% of Millennials, 40% of Gen X and 17% of Baby Boomers order from Amazon at least once a week, brands that adjust their strategies to meet the needs of consumers looking to cut back on purchases from the giant retailer, have large opportunities ahead.

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In addition, the vast majority of consumers (72%) plan to go back to in-person shopping as soon as possible, presenting opportunities for other on and offline retailers.

Both big and small brand names will be interested to know that 41% of Gen Z’ers said they would move to other retailers if they provide the same purchase experience as Amazon and incentives and discounts to shop with them. Many retailers have already made the right pivot during the COVID pandemic: 70% of Gen Z and Millennials said that some of their favorite brands created a deeper connection with them this year through their online experience.

“The online shopping behavior has shifted and some online sites are clear winners, but the consumer is now fickle enough that the Amazon stronghold can be broken,” said Paige O’Neill, chief marketing officer, Sitecore. “The stay-at-home economy of COVID caused e-commerce traffic to grow 18% over the past year, which is 18x the regular growth rate1. Amazon saw particularly strong increases, but the tide is turning. There is a desire from our younger generations to move away from the giant, in favor of other retailers. However, to strike while the iron is hot, brands and retailers must provide strong digital commerce experiences to capitalize on the Amazon fatigue.”