Customers' Romance with Amazon: True Love or Infatuation?
Fast, impulsive, emotionally charged. They cause trembling hands, a faster heartbeat, and beads of sweat on your forehead. It turns out that feelings similar to dating can guarantee online shopping. But is customers' romance with the Amazon platform a lasting feeling, or just infatuation? According to Mintel research, consumers are delighted with the giant's offer. This delight is especially visible among Prime subscribers, the world's second-largest subscription service after Netflix.
Although a quarter of a century has passed since Amazon appeared on the market, it is still the largest player in the global e-commerce industry. Its founder, Jeff Bezos, is not resting on his laurels and constantly expands his empire, offering new functionalities and services designed to attract and retain customers. The Amazon Prime membership program handles this task exceptionally well, with 105 million subscribers, making it the second-largest subscription-based model after Netflix. Will this state of affairs last long? How lasting is this "feeling"? Mintel decided to find out.
A marriage of convenience
A marriage of convenience
In an August study by research firm Mintel - "How Amazon Continues to Raise the Bar" - an analysis was conducted on how the American service is perceived by consumers and how durable this relationship is.
The research results correspond to the market position of Bezos's company - one fifth of respondents admit they cannot imagine life without Amazon, and one in three respondents say it is their favorite place to shop. How lasting is this relationship and is it closer to unconditional love or infatuation?
"Mintel specialists say this relationship should be described more as falling in love than true love, because most buyers associate Amazon most strongly with saving money and time - both advantages can be defined as practical. I think in America they know this perfectly well, which is why so much attention is paid to pricing policy, promotions, and the development of logistics services. In the US, the one-day delivery system is already being implemented, which assumes that some goods will be delivered by the giant on the same day of purchase." - says Aleksandra Szarmach, Marketing Manager at Nethansa, a Sopot-based startup that brings Polish and German companies onto the international Amazon marketplace, where it comprehensively manages their sales using its proprietary Cliperon system, equipped with artificial intelligence.
Such love happens only once in a lifetime
Such love happens only once in a lifetime
Something that has become almost a symbol of the American corporation over the years is the Prime service that users of the site can purchase. Such a subscription gives them access to free shipping, special offers, and priority treatment. According to Mintel research, satisfaction among Prime holders is particularly high; two thirds of them say they are "very satisfied" with what the service offers them. And yet, not long ago the company introduced a price increase to $119 per year. So what makes Bezos's company's position so strong that even a price increase does not discourage buyers?
"Amazon is above all a holistic experience, a combination of emotion, trust, and convenience. In Mintel research, buyers rate Bezos's shopping platform above all major competitors in almost every respect: delivery, ease of use, and product selection. The company constantly improves the purchasing model, rebuilding its audience with new services that make the entire process, as well as the experience - complete and coherent. There is a saying that more is expected from the better; expectations are high, four out of ten respondents admit that Amazon has redefined what convenience means when it comes to shopping." - says the Nethansa expert.
The revolution started by Jeff Bezos is cursed by other market players, because due to Amazon's popularity, not only have their revenues fallen, but customer expectations have also risen. As a result of the platform's influence, 27% of consumers expect more from other retailers. The force with which the giant affects the market and consumers has even gained its own name: the Amazon effect. However, the e-commerce giant is not only low prices and fast shipping - it is also experiences, that is, emotions.
There is chemistry between them
There is chemistry between them
Brain chemistry specialists have repeatedly conducted research to determine what reactions occur during the purchasing process. It was discovered that popular shopping causes an increased amount of the happiness hormone - dopamine - which the brain uses to reward and reinforce behaviors it perceives as good. The same process occurs during a successful date, as well as when scoring a goal in an important match. This explains why Amazon's activity leaves such a strong mark on the functioning of modern societies. Or maybe something else is behind Bezos's success?
"Feelings are certainly important, but let's talk about what their source is. The key to Amazon's success is the trust customers place in it. That, in turn, is built through credibility. The American service is no longer just an online store, but also the world's largest product review search engine. LoyaltyLion research shows that 91% of people read reviews before making a purchase. Such a practice allows the user's actions to be closed within the boundaries of a single platform." - argues Aleksandra Szarmach.
In a physical store, a customer often has the opportunity to talk to a consultant or other people who are around them at a given moment. In the online world, such interaction is impossible or much more difficult, which is why services that collect opinions have taken over this function. 84% of respondents in the LoyaltyLion study say they trusted online opinions just as much as a personal recommendation. Importantly - the aforementioned study shows that companies using review functionality can increase the conversion rate almost 10-fold, from 2% to 26.83%.
Summary
Mintel research shows that Amazon customers are delighted with the platform, but their relationship is better described as infatuation than love – most buyers associate the giant with saving time and money. Prime subscribers, despite the price increase to $119 per year, declare high satisfaction, and 27% of consumers expect more from other sellers under the so-called Amazon effect.
Nethansa expert Aleksandra Szarmach points out that the foundation of success is trust built on reviews – according to LoyaltyLion, 91% of people read opinions before buying, which can increase conversion almost 10-fold. This shows that loyalty toward Amazon results from practical mechanisms, not just emotions.
