Study Shows Consumers Buy from Familiar Sites
August 26, 2015
Instead of heading out to brick-and-mortar stores, consumers now prefer to look for products to buy online. According to a report released by Amazon.com and Pymnts.com, shoppers are increasingly looking to digital retail marketplace platforms for products before going on a retailer’s website.
The study was conducted last month in July, and the panel of consumers consisted of over 2,000 online and mobile shoppers. The researchers found that today’s highly engaged online and mobile shoppers tend to be affluent, with incomes over $80,000, and well educated with four years of college or more. They also tend to be between the ages of 25 to 34.
The panel of consumers were asked where they first started their shopping journey when they needed to make an online purchase. The majority of surveyed consumers (64%) said they went to an e-commerce marketplace first, like Amazon.com or eBay. Following marketplaces, 48% of consumers chose to visit the websites of their favorite retailers and merchants first. 40% of respondents used search engines to find products, and 29% said that they liked to go straight to social media.
Online Purchase Factors
The study showed that a number of factors come into play when consumers decide to finally make that online purchase. Surprisingly, consumers aren’t concerned about shipping costs, or the price of an item. 23% of surveyed consumers say that they have to trust the website they’re making a purchase on before they give up their financial data. 16% of consumers make a purchase through a particular website because of tailored promotions and rewards. 14% of respondents finalize their purchases on websites that they’ve used before, and had good experiences with. Other important factors for shoppers were preferred methods of payments, and ease of use.
Online shoppers are also comfortable using hypothetical new payment methods from Amazon and Apple. 50% of respondents said that they would use a new method of payment from Amazon for online purchases via desktop, and 44% said they’d use Amazon’s payment method for mobile purchases. The researchers found that customers trust Amazon twice as much as other companies.
Consumers also trust Apple’s online payment method product, but only at 25% for desktop payments, and 22% for mobile. The researchers believe that customers are so comfortable and trusting of Amazon because customers who are 25 to 34 years old grew up with the company.
Brick-and-mortar retailers with an online presence can drive consumers to their sites with discounts specifically for those who sign up for a loyalty rewards card. Loyalty rewards can keep consumers coming back to a site to make purchases. When consumers keep coming back to an online store to make their purchases, they become more familiar with the site, and more comfortable with using it.
To get more consumers to sign up for a loyalty rewards card, retailers should make signing up as easy as swiping an ID. Retailers can keep customers coming back to their websites by making it easy for them to sign up for rewards.