“Amazon Fatigue” opening new doors for brands and retailers

by | May 4, 2021 | Public Relations

Amazon became an even bigger behemoth during COVID, with consumers turning to the company’s reliable delivery services, tailor-made for such a crisis. But new research from digital experience management software firm Sitecore reveals that 40 percent of U.S. shoppers would like to reduce the amount of shopping they do on Amazon.

The firm’s survey of over 2,000 U.S. consumers, conducted by Advanis, reveals that 30 percent 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 percent), followed by Millennials (37 percent) and Gen X (34 percent). By contrast, 86 percent 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 percent)
  • Better choice from other retailers (21 percent), and
  • Desire to support other retailers (12 percent)

Leading attributes to pull consumers to non-Amazon retailers are: purchase incentives/discounts (38 percent), a similar (easy) purchase experience (42 percent) and same-day delivery (25 percent).

Gen Z’s reasons are based more on societal issues

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

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

Ranking the defectors

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

Considering more than a third (35 percent) of Gen Z, a massive 49 percent of Millennials, 40 percent of Gen X and 17 percent 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.

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

Opportunities for brands and retailers

Both big and small brand names will be interested to know that 41 percent of Gen Zers 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 percent 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 at Sitecore, in a news release. “The stay-at-home economy of COVID caused e-commerce traffic to grow 18 percent 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.”

Advanis (@AdvanisInsights) conducted a survey among 2,142 U.S. consumers, including 1,061 consumers aged 18-24. The research was commissioned by Sitecore, reflecting on COVID-19 impacts and priorities going forward. The study was conducted March 30 – April 8, 2021. Data is weighted to reflect the age proportion of U.S. residents.

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Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 12 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richardc@bulldogreporter.com; @BulldogReporter

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