Amazon: Primed for Impact but Australian Shoppers Expect More

We know that uptake of Prime membership is key to Amazon’s growth in new markets. We’ve investigated consumer response to Australia’s first Prime Day on July 16th in order to better understand Amazon’s growth prospects.

Essential Prime Day Numbers

Australians were excited about Prime Day. We saw surges in:

  • Social media conversations: Up 190%.
  • Visits to Prime Pages: Up 324%2
  • Prime Sign-ups: Up 377%

Starcom’s own research showed Prime Day exceeding consumer expectations across functional and emotional areas.

A short-lived Impact?

However, immediately after Prime Day, numbers of social media conversations, visits to Amazon sites, Prime pages and Prime sign-ups all dropped sharply. Reverting to pre Prime Day levels, where they have remained.

Despite this drop in online behaviour, we’ve found several clues to indicate Amazon is still on track for growth.

Australians are increasingly positive towards Amazon

Starcom Social Listening reveals that 88% of social media mentions about Prime were positive in June/July. Amazon also enjoys a halo effect, with positive sentiment increasing from 62% prior to Prime launch, to 72% post Prime Day.

Our Media Futures research shows that strongly positive brand experience increases the likelihood of choosing that brand ten-fold.

Australians are thinking differently about Amazon

Leading into Prime Day 2018, Australians began heavily searching Amazon for gaming consoles, sportswear and mobile phones.  This linked to top sellers on Prime Day … PS4 with Fortnite and FIFA 19 came out in front.  Quite a difference from the focus on books and Kindles in previous years.

We believe Amazon will increasingly be considered as a retailer across a broad range of categories.

Australians are visiting Amazon with a mission in mind

Conversions on Amazon.com.au (i.e. visits that lead to onsite purchases) averaged at 7.77%, prior to Prime Day. This in itself is a strong figure, placing Amazon ahead of all other online retailers in Australia. Even more impressive is the surge in conversion on Prime Day to 14%.

Amazon is becoming a go-to destination. A step-change in online shopping behaviour has already taken place.

Why hasn’t Amazon reached Prime Velocity?

Millions of Australians are familiar with Amazon.com and U.S. Prime. Setting high expectations for Amazon on a large scale.

Although Prime Day created excitement, the pared back Prime experience in Australia is missing some of the most compelling benefits offered in the U.S.

This creates an Expectation Gap which deters the majority of Australians from joining Prime, despite the low price.

Starcom believes that Amazon will need to bring a U.S. style Prime offer to Australia, in order to drive Prime membership to a level that will accelerate Amazon growth and significantly impact Australian retail.

  1. Starcom Social Listening via Netbase. Number of mentions of Amazon or Prime on July 16-17 2018 vs. July 14-15 2018
  2. Hitwise: Amazon Prime pages and Prime sign-ups. Daily Trend pre and post Prime Day.

  3. Starcom Social Listening via Netbase & Hitwise.

  4. Starcom Social Listening. Positive sentiment towards Amazon Prime: 24/6 – 24/7/18. Amazon Pre-Prime: 15/5-16/6/18. Amazon Post-Prime: 18/7-17/8/18.

  5. Starcom Media Futures “Return on Experience” March 2018

  6. Hitwise: Top searches on Amazon. One week leading up to Prime Day YOY 2017 vs. 2018.

  7. Amazon Press Release 18/07/18 “Prime Members Again Enjoyed the Biggest Global Shopping Event in Amazon History this Prime Day.”

  8. Hitwise: Retailer conversions YTD August 2018

Nicole Conroy
Author

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