How Retailers Can Compete With Amazon For Holiday Shopping Dollars
By Christine Kern, contributing writer
Report finds that 43 percent of consumers will use Amazon to buy their gifts.
With Black Friday already behind us, the Holiday shopping season is in full swing. This year, a new report finds, almost half of consumers (46 percent) will use Amazon for their holiday shopping needs, and 43 percent will buy half their gifts from the online giant. The good news is that retailers can still compete with Amazon: consumers will buy elsewhere due to better prices (65 percent), special offers (46 percent), and similar or faster delivery times (29 percent). Easier access to store inventory (23 percent) and exclusive or unique products (22 percent) can also help draw customers to physical stores.
“High consumer confidence paired with attractive Black Friday specials have created an irresistible combo for shoppers,” said Michele Dupré, group vice president for retail, distribution and hospitality with Verizon Enterprise Solutions. “The challenge in the fierce race for wallet share will be to double down and create a perception of value that will entice new customers while rewarding loyal customers.”
Astound Commerce ‘s 2016 Holiday Report Infographic reveals key shopping influencers, online customer shopping behavior, in-store preferences and social commerce actions from a survey of more than 1,000 consumers. The survey also found that 2016 retailer experience is crucial to 2017 retailer selection, making this holiday season crucial for forward-thinking retailers.
According to Astound, the top 5 shopping influencers are price (79 percent), free shipping (68 percent), product availability (67 percent), past experiences with a retailer (64 percent), and guaranteed on time delivery (62 percent).
The report also found that Social Media Matters: 75 percent of shoppers use Facebook for customer service, 37 percent use Pinterest to stay on top of trends, and 59 percent use YouTube for video reviews.
Millennials wield more than $200 billion in purchasing power, making them a huge revenue driver for retailers this holiday season. And specific behaviors will be more prevalent in Millennials. Millennials will order more products on mobile devices, purchase more products on Amazon, and more will use same-day delivery than all other consumer age groups.
Additionally, in-store tech is an important feature for shoppers, with 55 percent saying they would rather interact with technology in the store than with sales associates; however, 69% say positive interactions with a sales associate impact purchasing decisions
And 75 percent of consumers want precision technology in-store, such as in-store mapping, mobile notifications, and touch-screen kiosks. Three-quarters (76 percent) of consumers use mobile devices in store to compare prices on Amazon, and 71% use mobile to check for coupons and promotions
And excellence across channels is also imperative. The report found that while millennials will order on mobile devices, use same day deliver, and shop at the last minute more than any other age group, they also will embrace physical stores, so that means retailers need to optimize all channels to guarantee success.
“The face of retail is continuing to shift into a complex, multi-layered experience and retailers that offer comprehensive digital capabilities with flexible fulfillment options and engaging in-store experiences are poised to grab a competitive share of consumer dollars,” according to Astound.