Which households are more inclined to shop at discount sites like Amazon?
Discounted online sites like Amazon are popular among consumers with high-income – more so that people may have suspected. According to a 2015 survey conducted by Shullman Research Center, consumers with high incomes are increasingly making their purchases online. And contrary to previous opinions, it’s the discount sites like Amazon that are proving very popular among wealthy households. The survey states that, 83% of consumers who live in households earning $500,000 or more say "Amazon is better than other stores,"
With Amazon’s wide range of offering and the added benefit of Amazon Prime’s speedy delivery options, wealthy consumers' preference for Amazon suggests they are placing a high value on convenience. Amazon has been upping the pressure for other retailers here with several convenience based options like one-hour delivery, online grocery ordering, and product refills.
BI Intelligence also has a new report that looks at the habits of online shoppers and how consumer trends are changing e-commerce. Here are some highlights from that survey:
•E-commerce shopping and buying has gone mainstream — almost three-quarters of the US population now shops online — but the typical online shopper still looks somewhat different than the average US consumer.
•Online shoppers tend to live in households with higher-than-typical incomes and higher-than-average educations. For example, the typical US online shopper holds a college degree and lives in a household earning $110,000 annually, whereas the typical US consumer is a 47 year-old female who has some high school education and lives in a household earning approximately $52,000 a year.
So what does this mean for supermarkets? Not only is it important to remember that online has gone mainstream and retailers need to have it as an available platform for shoppers, but also that for shoppers of all income levels, convenience is key. No matter the income range of your customer base, convenient and efficient shopping and delivery options need to be available.