NEW YORK: The extent to which Amazon now completely dominates online retailing in the US has been confirmed in CNBC’s latest All-America Economic Survey.
Now in its twelfth year, the nationwide survey of 800 Americans revealed that three-quarters (76%) of consumers say they will do most of their online holiday shopping on Amazon this year.
Walmart comes in second, but way behind, with just 8% of consumers expected to conduct their online holiday shopping with the retailer, while others – such as department stores (6%) and chain stores (4%) – lag further behind.
In addition, two-thirds (65%) of US online shoppers search on Amazon always or most of the time, representing a sharp rise over each of the last two years.
“As much choice or selection as the internet provides, it’s just an amazing set of data to see all that concentrated in one online retailer,” said Micah Roberts, a partner at research firm Public Opinion Strategies, which carried out the survey for CNBC. “It really underscores the dominance in that space,” he added.
But it’s not just Amazon’s ability to attract product searches that stands out in this year’s findings because the e-commerce giant has also “broken the mould” on conversions.
According to CNBC, most estimates put the average rate of overall online conversion at around 3%, yet the survey found 57% of people who search on Amazon go on to buy always or most of the time.
One explanation might be that 43% of respondents cite free shipping as most important when it comes to online shopping – and this is what Amazon comes close to offering in return for a $99 annual subscription to its Prime Membership scheme.
Also motivating online shoppers is the ability to compare prices (26%), followed by the availability of product information (18%).
Overall, 45% of survey respondents say they will do most of their holiday shopping online – or more than double (22%) the number in 2007 – but of those who don’t, “big box” stores such as Walmart or Best Buy are the next most visited, at 28%.
Finally, CNBC reported that average holiday spending intentions will top $900 for the first time in the 12-year history of its All-American Survey, eclipsing last year’s estimate of $702 by a wide margin.
“The holiday spending outlook is stronger than it has been in over decade,” said Micah Roberts.
“People are more comfortable with where the economy is and where it’s heading, prompting them to spend money this holiday season and help boost the economy as well.”
Sourced from CNBC; additional content by WARC staff