Amazon customer satisfaction has plummeted. What can brands learn from this?
Posted: Thu Dec 05, 2024 9:22 am
Kamila Dantas
Nov 30, 22 | 8 min read
Reading time: 6 minutes
A survey released by PYMNTS , which measures the level of satisfaction of American consumers, noted the decline in Amazon customer satisfaction , reaching one of the lowest levels in the retailer's history.
This blow to the company's leadership, which for nearly three decades has been defined by its obsession with customers, comes as no surprise to the retailer, which last year had its worst result in the index (78 out of 100), becoming its lowest point in history.
The index began tracking company data from the year 2000.
The report also showed that the number of Amazon customers who said they were " extremely satisfied " or " very satisfied " with the company dropped to 79% this year.
That number was slightly higher than during the pandemic (65%), but still below the company's peak 10 years ago, which already reached an 88% satisfaction rate.
Why is this happening and what lessons can marketers learn from this situation? Let's answer these questions in this article!
Even with falling numbers, Amazon continues to lead
Despite indices showing clear signs of suriname email list growing customer dissatisfaction with the company, Amazon continues to dominate the retail scene, surpassing its biggest rival, Walmart , and leading with almost 45% of US e-commerce in the second quarter of the year.
One of the reasons experts give for Amazon's continued leadership in this market is the quality of the products the company offers.
According to PYMNTS, “ e-commerce retailers like Amazon provide detailed product information and reviews so consumers can confidently purchase durable goods online without having to visit physical stores to obtain this information .”
The company also held the leadership position in articles for:
sports, hobbies, music and books (56%);
electronic products and household appliances (54%);
health and personal care (43%).
It is a big challenge to remain the largest online retailer in the country, with more than 200 million users worldwide who pay for Amazon Prime subscriptions; a service that offers its subscribers:
faster product shipments;
discounts and access to first-hand promotions;
access to the company's streaming service.
PYMNTS data makes this leadership of Amazon clear, which, as of the fourth quarter of 2022, held a 15% share in this segment, slightly above the same period in 2021, while its competitor, Walmart, saw its share fall.
The study therefore shows that Amazon remains the top destination for American consumers, accounting for nearly half of all online transactions in the second quarter of 2021 and 2022 in the United States.
The pandemic was a key factor in increasing Amazon's dominance in online commerce.
Although Walmart has long dominated consumer retail spending share, that number has been declining over the years.
Amazon peaked at 8.1% in Q4 2021 in retail consumer spending, while Walmart fell to 8.2%.
In terms of total consumer spending, Amazon is slightly ahead of Walmart with a 3.1% share in Q2 2022 versus 3% for its main competitor.
These changes are very significant, as it was during the 2020 pandemic that Walmart fell and Amazon thrived as consumers began to make more purchases online, driving the company's growth over the past two years.
Another key factor for Amazon's growth and dominance in the online market is its extensive service capabilities, ease of payment, and vast resources related to product shipping logistics:
Amazon controls all shipping, ordering, packaging and delivery of its products, helping it position itself ahead of Walmart in the race to increase market share and more consumers online.
Some data can help to see the force that the pandemic scenario had in making this happen:
In Q1 2019, Amazon accounted for 8.7% of consumer discretionary spending, and in Q2 2022, this share reached 14%, having peaked (17%) during the pandemic in Q4 2020;
Amazon continues to gain ground in the furniture market, achieving its highest market share of 11.8% during the fourth quarter of 2020, while Walmart occupied 7.9%. As of the second quarter of 2022, Amazon's market share is 10%, while Walmart stands at 7.3%.
And once again, this market dominance is attributed to the growing consumer interest in online shopping, fueled by the pandemic, and also the convenience of the Amazon Prime service — for subscribers — which facilitates free delivery of various products to buyers.
Nov 30, 22 | 8 min read
Reading time: 6 minutes
A survey released by PYMNTS , which measures the level of satisfaction of American consumers, noted the decline in Amazon customer satisfaction , reaching one of the lowest levels in the retailer's history.
This blow to the company's leadership, which for nearly three decades has been defined by its obsession with customers, comes as no surprise to the retailer, which last year had its worst result in the index (78 out of 100), becoming its lowest point in history.
The index began tracking company data from the year 2000.
The report also showed that the number of Amazon customers who said they were " extremely satisfied " or " very satisfied " with the company dropped to 79% this year.
That number was slightly higher than during the pandemic (65%), but still below the company's peak 10 years ago, which already reached an 88% satisfaction rate.
Why is this happening and what lessons can marketers learn from this situation? Let's answer these questions in this article!
Even with falling numbers, Amazon continues to lead
Despite indices showing clear signs of suriname email list growing customer dissatisfaction with the company, Amazon continues to dominate the retail scene, surpassing its biggest rival, Walmart , and leading with almost 45% of US e-commerce in the second quarter of the year.
One of the reasons experts give for Amazon's continued leadership in this market is the quality of the products the company offers.
According to PYMNTS, “ e-commerce retailers like Amazon provide detailed product information and reviews so consumers can confidently purchase durable goods online without having to visit physical stores to obtain this information .”
The company also held the leadership position in articles for:
sports, hobbies, music and books (56%);
electronic products and household appliances (54%);
health and personal care (43%).
It is a big challenge to remain the largest online retailer in the country, with more than 200 million users worldwide who pay for Amazon Prime subscriptions; a service that offers its subscribers:
faster product shipments;
discounts and access to first-hand promotions;
access to the company's streaming service.
PYMNTS data makes this leadership of Amazon clear, which, as of the fourth quarter of 2022, held a 15% share in this segment, slightly above the same period in 2021, while its competitor, Walmart, saw its share fall.
The study therefore shows that Amazon remains the top destination for American consumers, accounting for nearly half of all online transactions in the second quarter of 2021 and 2022 in the United States.
The pandemic was a key factor in increasing Amazon's dominance in online commerce.
Although Walmart has long dominated consumer retail spending share, that number has been declining over the years.
Amazon peaked at 8.1% in Q4 2021 in retail consumer spending, while Walmart fell to 8.2%.
In terms of total consumer spending, Amazon is slightly ahead of Walmart with a 3.1% share in Q2 2022 versus 3% for its main competitor.
These changes are very significant, as it was during the 2020 pandemic that Walmart fell and Amazon thrived as consumers began to make more purchases online, driving the company's growth over the past two years.
Another key factor for Amazon's growth and dominance in the online market is its extensive service capabilities, ease of payment, and vast resources related to product shipping logistics:
Amazon controls all shipping, ordering, packaging and delivery of its products, helping it position itself ahead of Walmart in the race to increase market share and more consumers online.
Some data can help to see the force that the pandemic scenario had in making this happen:
In Q1 2019, Amazon accounted for 8.7% of consumer discretionary spending, and in Q2 2022, this share reached 14%, having peaked (17%) during the pandemic in Q4 2020;
Amazon continues to gain ground in the furniture market, achieving its highest market share of 11.8% during the fourth quarter of 2020, while Walmart occupied 7.9%. As of the second quarter of 2022, Amazon's market share is 10%, while Walmart stands at 7.3%.
And once again, this market dominance is attributed to the growing consumer interest in online shopping, fueled by the pandemic, and also the convenience of the Amazon Prime service — for subscribers — which facilitates free delivery of various products to buyers.