Prime Day research highlights rise of spontaneous shoppers

Shoppers are spending more during Amazon Prime Day, but they are getting smarter and more price aware, according to new research from Periscope By McKinsey.

The company surveyed 3,000 consumers in the US, UK, France, Germany and Italy. This year every country spent more than in 2017. The biggest move was in the UK where 59% of shoppers spent ‘a bit more’ or ‘much more’; this was closely followed by France (57%) and Germany (54%). There are also signs the US is becoming more constrained in its spending as the top country where shoppers say they ‘spent the same’ at 40%.

A majority in every country bought “a bit more” or “much more” product than in 2017. The greatest shift was in France with 62% falling into these categories, followed by the UK (57%), Italy (54%), Germany (49%) and the US (46%).

Whilst Amazon Prime Day may be going from strength to strength, it has lots of competition. For respondents, Cyber Monday is widely regarded as the top named sale event competitor with an average 44% saying they participate, though it was as high as 65% in the US.

In Germany, Mega Monday was the next most participated event (10%), but in the US (30%), UK (21%), Italy (9%) and France (8%) it is Free Shipping Day, which celebrates its 10th anniversary in 2018. Whilst many feel they get a great deal at Amazon Prime Day, the results show a sophistication in some markets where the convenience of using a single marketplace, and low prices, is not enough to keep them from shopping in ‘other’ places.

On average 62% of shoppers now check ‘a couple’ or ‘several’ of their prices. “There is no doubt that Amazon Prime Day keeps gaining in popularity with huge global awareness, and multiplying participation every year,” says Channie Mize, Senior Vice President and Global Sector General Manager, Retail at Periscope By McKinsey. “Shoppers are spending more at Prime Day but they are getting smarter, they are becoming increasingly price aware, and more willing to see what else is available elsewhere online.”

“It is a huge opportunity to Amazon, but other retailers should take heed that with the right sales initiatives and understanding of their customers, they can keep them loyal and coming back for more. But there still is a significant group of shoppers that like to shop spontaneously. Retailers should see this as an opportunity, using personalised marketing and messages to increase the chances of showing shoppers an ‘unexpected delight’ that they will want to buy.”