EMEA - Top Insights for Global Brands from Pattern’s Amazon UK Shopper Research 2022

A team of data fanatics, Pattern seeks to better understand UK shopper behaviour across ecommerce, with a focus on Amazon, to provide strategic support to the consumer brands authorised to sell on Amazon UK as well as many global consulting clients. Pattern leverages this research to supplement our own Amazon transaction data in order to build a comprehensive picture of Amazon shoppers, and understand buyer behaviour.

The Post-Pandemic UK Online Shopper

Throughout the numerous lockdowns experienced during COVID-19 in the UK, shoppers had little choice but to adopt online channels for non-essential purchases. These circumstances incentivised many brands to shift to digital marketplaces, like Amazon, to capture a growing audience looking for variety and convenience across all product categories. But what does that mean for Amazon and other marketplaces as the UK and Europe ease out of restricted living? In January 2022, Pattern polled online shoppers to build on the findings from the 2021 UK Shopper Report to learn how shoppers use online channels, why they choose Amazon, and identify key trends to future-proof your brand on the marketplace and beyond.

Top Three Data-Driven Insights

It is clear that part of the change in customer behaviour brought about by the pandemic has stuck.

Amazon is the Start of the Shopper Journey

Last year our research supported the idea that most online shoppers begin their journey on Amazon. This year, we found 93% of online shoppers had visited Amazon to research potential purchases. More than half of shoppers (63%) reported visiting Amazon to check the prices of products, 56% to look for gifts, 50% to look for product information, and 37% to find inspiration. Edge by Ascential reports Amazon is expected to account for 15% of all retail sales by 2025 – up from 9% in 2020. Coupled with the data that a high percentage of online shoppers begin their journey on Amazon, identifies for brands that their presence on Amazon affects purchase decisions through all sales channels.

Gifting

The majority of UK online shoppers buy gifts online, and, in 2022, 66% of UK online shoppers are regularly logging on to purchase gifts. In our study, we found 56% of respondents turn to Amazon UK for gifting, which is high traffic for any brand. However, being a gifting destination comes with a sense of responsibility and buyer confidence.

Overall, 40% of shoppers who purchased from Amazon in the past year faced at least one issue. Out-of-stock was noted by 21% of all respondents and the product not delivered within the expected time frame a close second (16% of answers). Brands need to ensure they have enough inventory in the right channels to service this demand, particularly during peak trading. As Amazon was the most cited channel for online gift purchases, this should be reflected in brands’ range planning decisions.

Prime Position

Prime membership is a forward indicator for any brand on Amazon UK – once people have Prime, they tend to visit Amazon more frequently and to buy more. Our 2021 research found that 50% of online shoppers had access to their own or someone else’s Prime account. Now, a total of 58.5% report having access to their own or someone else’s Prime account, and a further 6.2% said they were likely to become Prime members in the next 12 months. With access to low prices, key deals and exclusive promotions, more Prime members will prioritise the marketplace in 2022 and beyond. This also matches our survey data that has about 25% of respondents stating they will spend a little or a lot more on Amazon.co.uk in 2022.

Amazon is a Prime Opportunity for Global Brands

UK-based online shoppers are savvy and choose to shop online because they’re looking for the best prices, exclusive products, better delivery options, and convenience. Amazon.co.uk delivers on these fundamental consumer ecommerce behaviours, and more, which indicates traffic and conversion will grow year over year. Our research shows DTC online sales can continue to grow as well, provided brands do not charge a premium. Simultaneously, Amazon continues to expand into a broad range of categories and is seen by consumers as the online gateway for shopping. This means brands need to:

• Ensure inventory is in the right channels, such as Amazon – particularly during peak trading
• Prices on Amazon are viewed as anchor prices and price depreciation on the marketplace will impact the price consumers are prepared to pay in all retail channels

Year after year, our research shows that a brand’s DTC channel is not enough to win at ecommerce. As more shoppers start their journey on Amazon, become (or get access to) Prime, and reset their expectations from Amazon, brands need to capitalise on the actionable insights. For more information about how Pattern accelerates brands on Amazon and beyond, please contact us uk@pattern.com.