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Amazon Grabs 55 Percent of Consumers' First Product Search, Set to Dominate 2016 Holiday ShoppingMOUNTAIN VIEW, Calif., Sept. 27, 2016 /PRNewswire/ -- Ahead of the critical 2016 holiday season, where e-commerce is predicted to grow 13.6 percent, a new study from personalization platform company BloomReach conducted by Survata found that Amazon has grown its lead as the place where consumers first search for products. Now, 55 percent of consumers turn to Amazon first when searching for products online. The second-annual "State of Amazon" study, which surveyed 2,000 U.S. consumers over Labor Day weekend, found that search engines and retailers lost almost equal ground, coming in at 28 percent and 16 percent respectively. Amazon increased its share by 11 percent in one year following BloomReach's inaugural "State of Amazon" study. The e-commerce giant has steadily increased its product-search lead throughout the year. BloomReach also conducted a mid-year survey of 2,000 consumers in April, revealing Amazon had 53 percent of consumers' first product search, with 27 percent for search engines and 19 percent for retailers. The 2016 "State of Amazon" study also found that Amazon is often involved in almost all online shopping activities. Approximately 9 in 10 consumers will check Amazon even if they find a product they want on another retailer's site, with 78 percent of those consumers indicating that happened often or always. However, comparison-shopping also worked against Amazon, as 70 percent of consumers said they'll consult another retailer before purchasing on Amazon. However, only 52 percent indicated they always or often double-checked retailers against Amazon. "Amazon continues to be the first destination when consumers want to find a product, driven largely by a perceived superior end-to-end experience. Online shopping is all about relevance and convenience, and comparison shopping has never been easier – especially with mobile growth," said Jason Seeba, BloomReach head of marketing. "However, while online retailers increasingly feel the pinch, search engines still play an integral part of an e-commerce strategy. This study highlights that just because consumers start on Amazon, that doesn't mean they ultimately buy from Amazon. Instead, they're often comparing and researching products on search engines and other retailers." This year, "The State of Amazon" study also analyzed consumer shopping behaviors on mobile devices, a channel that is driving more than half of all traffic to top sites and has grown to 30 percent of all U.S. e-commerce. While Amazon (mobile site or app) still commanded 50 percent of consumers' first stop for products on mobile, search engines fared better with 34 percent, with retailers lagging at 16 percent. BloomReach found that 76 percent of consumers shop on their smartphone, with 90 percent of them reporting that they've made a purchase on a smartphone. Other notable findings among those who shop on smartphones included:
With the core of the 2016 holiday shopping season fast approaching – a critical time for retailers – the "State of Amazon" study also provides the first look into holiday-shopping behavior. By Labor Day weekend, 42 percent of consumers had started gift shopping, and of the remaining majority who hadn't, 61 percent will start on or before Black Friday. A majority plan to do more than 50 percent of their holiday shopping online. An astonishing 94 percent plan to shop on the Amazon this holiday season. In addition, consumers seem to view Amazon not only as a place to buy gifts, but also as a place to get gift ideas:
Amazon's performance relative to other retailers has caught the attention of some consumers as well. An overwhelming majority of U.S. consumers recognize Amazon as the dominant player in e-commerce currently, and the "State of Amazon" study revealed that nearly one in five consumers was concerned about the company's dominance relative to other retailers. Factors Driving Amazon's Success and Opportunities for Retailers to Fight Back Ensuring high-quality site experiences continues to be a prime reason why shoppers pick their retailers of choice. Approximately 58 percent of U.S. consumers noted they've left a retailer's site for Amazon after having a poor experience. This stands in stark contrast to the reverse scenario. Only 30 percent of consumers noted a bad site experience on Amazon had led them to shop with another retailer. Site-experience issues – especially those related to site search and product discovery – often were the reasons why consumers turned to Amazon:
However, the study did highlight some bright spots for retailers and opportunities to gain back market share.
Fierce Competition in E-Commerce Sparks Some Worry Among Retailers In addition to the consumer survey, BloomReach also surveyed 400 marketing and sales professionals at large retailers to see how they viewed their competition, company performance and the marketing technology landscape. A majority were optimistic about their company's future; however many expressed worry and uncertainty – especially among those who named Amazon as their top competitor.
Marketing and e-commerce technology – a field that has exploded to almost 4,000 solutions – was viewed as a top way to compete more effectively, but the crowded space has created some confusion among online retailers:
The 2016 "State of Amazon" report is available for download at www.bloomreach.com/amazon. About BloomReach BloomReach is a machine-learning, big-data technology company that delivers a more relevant digital experience for more than 170 customers using the data from more than 75 million monthly unique consumers and the applications built on its Personalization Platform. BloomReach's core technology – the Web Relevance Engine (WRE) – algorithmically understands content and users, matching this understanding with demand and intent data from across the Web. BloomReach's Commerce Suite has solutions that adapt your content to make it personal and relevant for individual users. The BloomReach Compass suite surfaces actionable product performance and recommendations that maximize revenue. BloomReach's portfolio of customers include: Neiman Marcus, Sears Outlet, Staples and Williams-Sonoma. Created in 2009, BloomReach is headquartered in Mountain View, Calif., with offices in New York City, London and Bangalore. BloomReach is backed by investment firms Bain Capital Ventures, Battery Ventures, NEA, Salesforce Ventures and Lightspeed Ventures. Visit BloomReach.com for more information. Photo - http://photos.prnewswire.com/prnh/20160926/412152
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