Commentary

Report Finds Chinks In Amazon's Armor, Opportunities For Retailers

Digital transformation firm Brooks Bell is out with new research designed to show how retailers can exploit chinks in Amazon’s armor to bolster their own commerce efforts. The firm’s report is based on a survey conducted late last year of 1,000 U.S. consumers. 

The research found that by and large consumer sentiment toward Amazon is quite good. Seventy-one percent of those surveyed said they felt good about making purchases on Amazon. 

And When presented with a list of positive and negative words and emotions, consumers overwhelmingly chose positive words to associate with the brand, the report found. The top three positive words associated with the brand: Convenience, fun and enjoyment. 

The commerce giant also scores well in the way they treat customers and resolve issues. 

But age makes a difference. The research found that 73% of those over age 60 feel good about Amazon shopping compared to just 63% of those under age 29. 

advertisement

advertisement

Age also makes a big difference in how consumers feel about Amazon’s place in the world. Younger generations are more hopeful — 42% say they agree Amazon makes the world a better place, compared to 27% of those over 60. 

While Amazon.com dazzles, many consumers show divided favorability toward other Amazon properties and ventures. “It’s interesting to note that the further Amazon’s ventures get from its core business — consumer products — the lower their favorability sinks.” 

Consumer favorability toward Amazon.com was high at 79%. But for Alexa and the company’s line of smart devices favorability drops sharply, to 43%. Favorability falls further for its retail properties (29%) and even further for founder Jeff Bezos (19%).  “It’s a good reminder for all brands to be strategic about growth,” the report asserts. 

The report also offers some opportunities for retailers where Amazon falls short. Close to half (44%) of respondents report the product they want not being in stock at least once a month, and over a third (36%) of respondents report not being able to find what they are looking for quickly at least once a month. 

Nearly a third (30%) of respondents also reported receiving a product late or receiving a low-quality product at least once a month. 

Older customers are generally less likely to say they have negative experiences with Amazon, which the report concludes is “more proof that younger and more digitally native consumers will continue to be the most discerning and have the highest expectations.” 

And not everybody shops at Amazon for a variety of reasons. The report lists a bunch of them, including a desire to support small businesses or to buy from a product specialist. The company’s labor practices were also cited and, in many cases, so was product quality. Using points or rewards on other websites was another reason. For some, political differences and values were also reasons not to shop at Amazon. 

“Consumers see Amazon’s customer service, product expertise and even values as weaknesses — all business functions that are difficult to scale at a global level,” the report concludes. “By examining your own capabilities in these areas, it’s possible to lean in and capture customers.”

 

4 comments about "Report Finds Chinks In Amazon's Armor, Opportunities For Retailers".
Check to receive email when comments are posted.
  1. adam waxman from Integrity Marketing Partners, January 19, 2022 at 10:32 a.m.

    I'm not an editor, but shouldn't this headline read that there are "...KINKS in the Armor..."?

  2. Ed Papazian from Media Dynamics Inc, January 19, 2022 at 12:07 p.m.

    Watch out, adam, "they" may call in those pesky Cyber Ninjas to investigate.

  3. Jason A from - replied, January 19, 2022 at 1:29 p.m.

    Chink (in the armor) seems to be the proper usage in this case - https://grammarist.com/usage/chink-kink/

  4. adam waxman from Integrity Marketing Partners, January 19, 2022 at 2:07 p.m.

    Thanks Jason A. I stand corrected! Carry on Mediapost!

Next story loading loading..