Study: Stores Lose Substantial Sales to Amazon Showroomers

Many consumers visit stores to later purchase products that they view on Amazon’s e-commerce site.

According to new data from Numerator, about three-quarters of buyers from large retailers also buy from Amazon. This includes 76% of Walmart shoppers, 77% of Target shoppers, and 75% of Costco shoppers. And more than half (53%) of Walmart shoppers made an Amazon purchase within one day of in-store shopping at Walmart, compared to 38% of Target and Costco shoppers.

The top four categories of in-store sales “disclosed” to Amazon – home and garden, electronics, health and beauty, and clothing – accounted for more than half of all dollars lost at each retailer. Home and garden products at Walmart had the highest percentage of sales leaks (18.5%) among all categories and retailers.

Leaks of electronics were highest at Costco (15.9% of disclosed sales), followed by Walmart (14.9%) and Target (14.2%). Target was the only large retailer analyzed by Numerator to include grocery store in the top five categories of leaks (5.2% of disclosed sales).

Target has the greatest opportunity to capture the lost selling day at Amazon, according to Numerator data. By preventing leaks of same-day trips to Amazon, Target has the potential to capture 10.3% more sales, followed by Walmart (+ 7.2%) and Costco (+ 4.7%).

In addition to analyzing purchase data, Numerator published a survey of verified Walmart and Target shoppers who tracked their in-store purchase with an Amazon order to understand the motivations behind cross-shopping. Key findings from the survey data include:

  • 30% of Walmart-to-Amazon shoppers said they made the purchase on Amazon due to lack of in-store product availability, six points higher than those reported by Target shoppers (24%).
  • Almost a third of Target and Walmart shoppers claimed “ease of delivery” was the reason for their purchase from Amazon, even though they were in the physical store the same day.
  • Lower prices were cited as the reason for shopping on Amazon by 22% of Walmart shoppers and 20% of Target shoppers.
  • Almost a quarter (24%) of Target shoppers said they bought from Amazon because they had researched the products on Amazon before going to the store, 7 points more than Walmart shoppers who said the same (17%).
  • When asked what Walmart or Target could do to capture more of a consumer’s purchases, nearly four in 10 consumers (39%) said Walmart should focus on product availability, 14 points higher than those who said the same for Target (25%).
  • Offering lower prices was recommended by 39% of Target shoppers and 36% of Walmart shoppers.
  • Improved in-store experience was the biggest difference (21 points) between Walmart and Target shoppers, with nearly one in three Walmart shoppers (28%) making the request, compared to just 7% of Target shoppers.

Percentage of lost sales of retailers on Amazon, by category

WALMART

Category

% of sales leaks

Home & Garden

18.5%

Electronic

14.9%

Health beauty

12.9%

Clothes

8.4%

Tools and Home Improvement

5.1%

TARGETING

Category

% of sales leaks

Home & Garden

16.8%

Electronic

14.2%

Health beauty

13.3%

Clothes

9.2%

Grocery store

5.2%

COSTCO

Category

% of sales leaks

Home & Garden

18.2%

Electronic

15.9%

Health beauty

13.5%

Clothes

8.2%

Grocery store

5.2%

[Read more: Amazon wins Black Friday for second consecutive year, reports Numerator]


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