NEW YORK: Under Armour, the sporting goods manufacturer, is leveraging the power of Amazon’s e-commerce platform in recognition of its status as a hub for retail search, consumer reviews, and “need-based” shopping.

Sid Jatia, vp/head of global ecommerce at Under Armour, discussed this subject during a session at the 2018 CommerceNext conference.

“Fifty-five percent of all searches in retail are starting on Amazon,” he said. “When you have such a stellar statistic, that becomes a clincher.” (For more, read WARC’s in-depth report: Under Armour asks if Amazon has become the preferred search engine for shoppers.)

Partnering with Amazon thus constitutes a realistic response to the evolving “consumer journey” for buyers who instinctively visit the site whenever they embark upon a prospective purchase.

And Under Armour’s research verified this theory by looking at the habits of “multi-brand” shoppers, who visit, a Walmart store, etc., and “mono-brand” customers, who stick resolutely with their preferred manufacturer.

“We did some work where we said: How many people shop multi-brand retail physically? How many people shop multi-brand retail online? How many people shop mono-brand retail?” Jatia said.

“And the number of people who shop just [at] mono-brand retail – which is and Under Armour stores – is still a fairly slim number of people when you think about the total number of shoppers out there.”

Amazon’s pre-eminent position in online-retail search, he added, is also encouraging an accumulation of marketing dollars, as budgets are “shifting dramatically” to this property for many brands.

To distinguish in a deeper sense the differences between online shopper behaviors, Jatia separated out “need-based” acquisitions of necessities, and “want-based” items that are non-essential, but highly desirable.

“When it comes down to need-based retail, Amazon is the definite leader in that,” he said.

Another benefit of the platform? The feedback that buyers leave on Amazon, complete with a one-to-five star score and supporting qualitative opinions.

“If you think about the large pool of user-generated reviews there is [on Amazon], I think having your product be [proximate] around what consumers really think about it, and being accessible there, is important to us.”

Sourced from WARC