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Jul 20, 2018

2018 Amazon Prime Day: An Early Read

Amazon Prime Day

InfoScout surveyed 1000+ shoppers who made a purchase on Amazon in the first 24 hours of Prime Day to quickly understand consumer sentiment and attitudinal insights around this retail holiday.

Now in its 4th year, Amazon Prime Day has proven yet again that this retail holiday is here to stay. According to Amazon’s own reports, this year’s 36-hour event was reported to be the biggest sales day in Amazon history, with Prime members purchasing more than 100 million products worldwide.

To get an early read on how consumers shopped Amazon, their perceptions of the deals offered, and whether they took advantage of the deals in-store at Whole Foods, we decided to survey shoppers who made a purchase on Amazon during the first 24 hours of Prime Day. Here’s what we learned.

Prime Day: An Established Retail Holiday

Amazon did the job getting the word out when it came to Prime Day. In fact, 89% of Prime Day shoppers were aware it was Prime Day before they shopped on Amazon, and 84% of Prime Day shoppers had planned to shop on Prime Day, up from 78% of Prime Day shoppers in 2017.

More than half of Prime Day shoppers (54%) said that Prime Day was their primary reason they shopped Amazon that day, and 83% said that it at least influenced their decision to shop on Amazon.

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And it wasn’t just the long-term Prime members coming in droves — 44% of shoppers indicated that 2018 was the first year they shopped on Amazon Prime Day.

So how many different places was Prime Day reinforced with shoppers? As expected, more than half (51%) of Prime Day shoppers gained awareness of the event through Amazon’s own website. 43% learned more about Prime Day from an Amazon email and 40% from Amazon’s mobile app. Outside of Amazon, social media led the charge, with 42% of shoppers hearing about Prime Day in this channel. And four years of successful Prime Days are paying off – one third (31%) of shoppers already knew about Prime Day from previous years.

Deals are Great, but Not the Best
Overall, Prime Day shoppers were satisfied with the deals offered, with more than half (53%) saying they were very satisfied or extremely satisfied with the deals Amazon offered. Only 6% said they were not at all satisfied. Yet, when asked to rank retail holidays from best deals to worst deals, Prime Day shoppers ranked Black Friday as the best retail holiday, followed by Cyber Monday, and Prime Day as #3.

Amazon Has its Shoppers’ Loyalty
61% of shoppers only considered Amazon for the products they purchased on Prime Day. For those shoppers who did consider other retailers, 20% considered buying those same products at Walmart, 12% considered Target, and 8% considered Best Buy.

Surprisingly, a full 46% of Prime Day shoppers didn’t compare Amazon’s prices with any other website or retailer. For those who did compare prices, 24% compared prices at Walmart, 14% compared prices at Target, and 9% compared at Best Buy.

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It’s Not Just Late Night Browsing on the Desktop

Prime Day mobile shopping is surpassing browser-based shopping. While 41% of Prime Day shoppers shopped via their computers, nearly two-thirds (67%) chose to shop on their mobile devices. Despite Amazon’s heavy marketing push with voice-activated shopping via Alexa-enabled devices, it appears that smart speaker shopping has yet to catch. Only 1% of survey respondents indicated they made a purchase through their Alexa device (though Amazon’s technical issues on Monday probably didn’t help either).

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And where did shoppers do their browsing & shopping? 73% shopped while at home, but 31% indicated that they shopped during working hours, spending an average of 41 minutes out of their work day to browse Prime Deals.

Consumer Electronics Reign Supreme

As expected, Consumer Electronics led the way in terms of most-purchased category, with nearly half (49%) of Prime Day shoppers making a consumer electronics purchase. Of these shoppers, 54% bought the brand they were intending to buy, and 13% were persuaded to buy a different brand than they had originally planned.

While 57% of these shoppers were already planning to purchase their consumer electronics product on Amazon Prime Day, 24% of consumer electronics shoppers had been planning to wait three or more months to buy that same product, indicating that Amazon was able to accelerate the purchase cycle for many consumer electronics products.

 

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Alexa Delivered

Amazon’s push to drive sales of its own Alexa products clearly worked, with Amazon reporting this year’s Prime Day as the “biggest event ever for Amazon devices.” Of the shoppers who bought an Amazon Echo product, 83% had planned to buy that item on Prime Day itself, and for Amazon Fire TV with Alexa, 69% planned to buy it on Prime Day.

And when it comes to Alexa devices, shoppers don’t seem to stop at just one. While 41% of Alexa shoppers indicated that this was their first Alexa product, 59% of shoppers claimed to own two or more Alexa devices.

The Whole Foods Puzzle Piece
Given that this was the first Prime Day since Amazon acquired Whole Foods, everyone was curious to see how Whole Foods would fit into the Prime Day picture. We asked some teaser questions to see how Prime Day shoppers were fitting a Whole Foods trip into their Prime Day plans.

Amazon has an opportunity to drive more foot traffic to Whole Foods during the Prime Day period next year. According to our survey, 47% of Prime Day shoppers were aware of the Prime Day deals at Whole Foods, but only 12% of Prime Day shoppers took advantage of those deals.

And despite Amazon cutting prices left and right in Whole Foods stores, 53% of Prime Day shoppers said they hadn’t noticed any difference in prices at Whole Foods since the Amazon acquisition.

With such tremendous growth since the first Prime Day launched in 2015, it’s hard to imagine how Amazon will top Prime Day each subsequent year. Will 2019 Prime Day overtake other retail holidays? Will it be the year voice-activated shopping goes mainstream? Will Amazon stock Whole Foods with even more products that aren’t traditionally available in-store? We can bet that Amazon leadership will be sure of one thing — customers will be seeing more product pages than puppy pictures.