In the ever-growing sea of online retailers, many business owners have tried to make it easier to attract customers by setting up shop with online platforms like Amazon. Rather than build an e-commerce website and establish an online presence, Amazon retailers can skip these steps and piggyback on the name recognition and trust of Amazon.
However, as more and more retailers turn to Amazon and similar online platforms, It becomes increasingly harder to stand out. A recently released study provides helpful data that can help business owners become more successful on Amazon and similar online selling platforms.
One of the most important questions for retailers on platforms with high amounts of competition is: "What makes shoppers choose one vendor over another?" There are, of course, obvious considerations like price. But on sites like Amazon or eBay, there are often many retailers with similar prices. Feedvisor recently a study which identifies factors consumers use to determine which Amazon seller they will use buy from.
According to Feedvisor's new Amazon User Study 2016, ratings are they key. From product rating to seller ratings, these scores play a huge role in determining which sellers consumers trust. The study found that nearly nine out of 10 (87 percent) shoppers on Amazon 'always/sometimes' check seller ratings before buying.
The rating of the product is even more important. With so many sellers with poorly made or knock-off merchandise on the web, it's important for consumers to feel secure that the items they buy will meet their expectations. According to the study, also found that most (92 percent) won't make a purchase for a product with fewer than 3 stars.
"Amazon users are savvy shoppers and they have high expectations of their eCommerce experiences," said Ohad Hagai, VP Marketing of Feedvisor, according to media reports. "It's no longer enough for Amazon sellers to post their items on the marketplace and expect to make a sale. Since the vast majority of customers prefer free and quick shipping through Amazon, sellers might wish to consider Fulfillment By Amazon as a means to accelerating their sales."
As has been discussed multiple times in the past, shipping matters to online consumers and this applies to platforms like Amazon. According to Feedvisor's report, 85 percent of those surveyed saying they won't buy products that also include shipping costs. This goes back to the point that even if the cost of "Free Shipping" is just shifted into the price of the product, it serves the retailer better than having an artificially low price with a high shipping cost.
Though this study specifically focused on data from Amazon, the insights of the report can be easily applied to other online selling platforms like eBay, Walmart, and Google. If this data proves anything, it's that consumers don't modify their behavior and put on blinders when they use services like Amazon.
Online shoppers are still paying attention to things like seller reputation, product reviews and shipping costs. Given their importance to consumers, business owners and retailers need to take care to improve these items in their online offerings.
For more information on how to become a better online retailer, read this article on metrics business owners can use to judge the effectiveness of their online marketing efforts.