In the evolving landscape of online shopping, a recent study by PYMNTS Intelligence, in collaboration with Adobe, sheds light on the factors influencing consumers’ preferences for eCommerce marketplaces over direct purchases from brands and retailers. The study, “The Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces,” reveals that affordability is the paramount consideration for online shoppers, with better prices driving their decision to choose marketplaces for their digital purchases.
The research, which surveyed over 3,500 U.S. consumers in October, aimed to delve into the online shopping behaviors and motivations behind consumer choices. Among the key findings, 18% of respondents who conducted most of their online shopping through marketplaces in the preceding month cited better prices as the crucial factor for their preference, outweighing other considerations such as product selection and free shipping.
This emphasis on cost-effectiveness is not lost on leading eCommerce platforms like Amazon, which continues to capitalize on this demand through various discounting initiatives and deals events. For example, during the Prime Day Event in October, Amazon reported that Prime members saved over $1 billion by taking advantage of millions of deals, highlighting the significant role of price in driving consumer purchasing decisions on the platform. The event also underscored the contribution of Amazon’s independent sellers, with Prime members purchasing more than 150 million items over the 48-hour sale period.
Similarly, Walmart has reported success in expanding its marketplace business, reflecting an effective response to consumer demand for affordability. The retailer noted a 20% increase in marketplace sellers during its most recent earnings call. Walmart’s CEO, Doug McMillon, emphasized the marketplace’s integral role in the company’s growth strategy, combining various revenue streams such as marketplace commissions, fulfillment services, and advertising to accelerate bottom-line growth more rapidly than top-line increases.
We know that the ability of eCommerce platforms to offer competitive pricing, alongside a diverse product selection and convenient shopping experiences, remains a pivotal factor in attracting and retaining customers. This trend highlights the increasingly price-sensitive nature of online consumers and the ongoing efforts of marketplaces to leverage affordability as a key differentiator in the crowded eCommerce landscape.
