Commentary

Overwhelming Or Challenging?

According to a recent blog by Matt Pace, VP of Millward Brown Digital’s financial services, retail and consumer products practices, despite recent stumbles with investors and cell phone shoppers, Amazon remains the dominant player in US ecommerce. As the top spot for online shopping, Amazon’s reach is hard to overstate. But the target is well worth aiming at!

Amazon accounted for 22% of consumer visits to any online retailer in September this year, up from 19% last year. For comparison, the top 5 online retailers combined account for half of all visits, while all other online retailers vie for share of the remaining 50%.

Share of Online Retail Shopping Visits

Online Retailer

Share of All Visits

Amazon.com

22%

Ebay.com

17

Walmart.com

6

Target.com

3

Etsy.com

2

All others

50

Source: compete/Millward Brown Digital, September 2014

For manufacturers of toys, diapers, groceries, auto parts, and everything in between, being on Amazon, and more importantly, being seen by consumers on the site, is paramount to ecommerce success.

Amazon acts as the Wikipedia of ecommerce for many consumers: it’s their de facto jumping off point for online shopping. The average shopper returns to the site 2.8 times per month to search for products. Regardless of whether a brand’s products are actually sold on Amazon or where the sale is ultimately transacted, brands recognize the importance of gaining exposure among consumers at the start of their shopping trip.

For most consumer brands, however, critical ecommerce questions often go unanswered. Specifically: how and where on Amazon are consumers shopping my category, and are my products located where my shoppers are?

Take search for example, suggests the report. Of the 75 million consumers who conducted at least one search on Amazon in September, only 30% ever clicked beyond the first page of their search results.

Likelihood of Amazon.com Searchers to View Results (Beyond First Page)

Page Number

% of Searchers Likely to View

2

19.7%

3

12.6

4

8.5

5

6.2

6

4.8

7-10

13.5

Source: compete/Millward Brown Digital, September 2014

On average, there is just a 20% chance that a shopper will view the second page of results, while brands appearing further down face weaker odds of ever being seen: searchers make it to the 10th page of results in only 1 out of 50 searches. Imagine trying to get noticed if your listing is among the currently 6 million results for “iphone cases.” Is this an exercise in futility, or worth a shot?

Of course, just appearing on the first page of Amazon search results doesn’t guarantee success, says the blog. At least 23 other products still compete for a click. Common sense suggests that the advantage goes to the first listing, but just how big of an advantage does the top spot hold? The answer: A LOT!

When consumers search on Amazon, there is a 35% chance they will click on products listed first in any search (either their first search or follow-on), compared to just 17% for items listed second. Searchers are 10 times more likely to click on items listed 1st than on items listed 10th.

 

Likelihood of Amazon.com Searchers to Click on Listing

Product listing

% Likely to Click

1st

35.1%

2nd

16.8

3rd

11.9

4th

8.6

5th

7.0

6th

5.9

7th-10th

5.0-3.5%

Source: compete/Millward Brown Digital, September 2014

To succeed in ecommerce, opines the report, consumer product brands need greater visibility in the consumers’ path to purchase for their brands and categories… both across the web and within key retailer websites like Amazon. Understanding how consumers shop provides brands at least a fighting chance, in the vernacular!

For more from compete, please visit here.

 

 

 

Next story loading loading..