Friday, September 16, 2016
AMAZON CONTINUES TO BLOW AWAY THE COMPETITION
Amazon is absolutely killing it in online retail and its lead continues to grow, according to a new note published by RBC Capital on Thursday.
The note shared a number of charts to illustrate this point, based on the results of a recent survey it ran against 2,024 people, of whom 1,682 had shopped on Amazon over the past 12 months.
The first chart shows that Amazon is the clear mindshare winner when it comes to online retail. Its rivals like eBay, Walmart, and Target lag far behind Amazon in terms of visit frequency. And Amazon's lead over second place eBay has widened over the past year.
The next chart shows where Amazon stands when people evaluate three of the most important shopping criteria — price, selection, and conveneince. Again, Amazon maintains a strong lead over its competitors in all 3 areas:
Perhaps the most impressive part is that Amazon is doing all this while keeping its customer satisfaction rate high. According to the survey, a whopping 85% of current Amazon customers said they're "extremely" or "very" satisfied, while only 2% said they were "slightly satisfied" or "not at all" satisfied.
But what should be most concerning to other retailers is that all of this is leading to higher purchase frequency on Amazon.com. Now, an estimated 47% of Amazon customers make at least 2 to 3 purchases a month, up from last year's 42%, the survey says.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.