- Getty/Rick T. Wilking
- Amazon shoppers tend not to compare prices or shop around before making a purchase, according to a new survey.
- 56% of Amazon shoppers said in a survey by InfoScout that they don’t feel the need to compare prices when they shop on Amazon.
- Shoppers generally rely on the convenience that Amazon offers, like with Prime’s free two-day shipping perk, instead of its low prices.
Amazon offers a lot of perks to its Prime members. The membership’s main selling point is its free two-day shipping, which makes it incredibly convenient for members to click “buy” on millions of items.
What makes it easier for customers to click the button: the confidence that Amazon is offering them a good deal.
In a survey by InfoScout, 56% of Amazon shoppers said they don’t feel the need to compare prices because of the free two-day shipping perk, which makes it convenient and frictionless to get purchases to their front door.
In fact, 47% said they already see Amazon as the lowest-priced option, further driving down the impulse to check prices elsewhere and make sure they’re getting the best deal.
In fact, Amazon is not always the cheapest, even if customers view it to be so.
A price study done by Boomerang Commerce in 2016 found it to be more expensive than competitors for some consumable items. Marketplace vendors are allowed to set their own prices, even when they’re selling through Amazon’s Prime shipping program. Those prices may not be as competitive as the prices Amazon sets itself.
Amazon customers’ price agnosticism could explain why Amazon is able to offer so many services as part of Prime. JPMorgan estimates that the services included in an Amazon Prime membership are worth $785 annually, versus the $119 that Amazon is now charging customers. It’s this symbiotic relationship, which sees Prime customers shop more often with larger orders, that is at the heart of Amazon’s business.
After all, customers who are extremely price-conscious likely wouldn’t pony up the $119 a year it takes to become a Prime member in the first place.
Access to the many deals of Amazon’s annual Prime Day is another perk of being a Prime member. Those deals begin at 3 p.m. ET on Monday, July 16.
Check out all of our Amazon Prime Day coverage:
- Amazon Prime Day, a made-up holiday that’s become bigger than Black Friday, is here. This is why it’s such a big deal.
- Everything you need to know and what to expect on July 16
- Amazon is giving Prime members up to $30 in free cash for shopping at Whole Foods
- Amazon is pulling out all the stops to make sure as many people as possible shop on Prime Day
- Amazon Prime Day is killing Black Friday
- 5 overlooked deals you really don’t want to miss out on during Prime Day – but probably have in previous years
- Amazon’s made-up holiday is forcing other retailers to offer crazy sales
- 9 money-saving tips and hacks for shopping on Amazon Prime Day
- Prime Day has become such a big shopping event that even retailers that never run deals are jumping on the opportunity