Amazon Prime Day 2021 Client Survey: 4 Tendencies From This 12 months’s Annual Buying Occasion

As vaccination charges proceed to extend, shoppers are shifting spending habits from hand sanitizer and disinfectant wipes to new garments and private care provides. Retailers are seeing robust gross sales heading into Q3 because of this.

Amazon Prime Day, usually held over the summer time, was pushed into October final yr because of the pandemic. As many shoppers return to “regular” spending habits, this yr’s annual occasion was in some ways the retail {industry}’s first large check on its street to restoration.

To assist uncover the most recent shopper tendencies for Amazon’s annual procuring occasion, Blue Yonder surveyed over 1,000 shoppers who participated in Prime Day to discover the affect of out-of-stocks, competing retailer deal days and extra.

Listed here are 4 tendencies we uncovered.

Out-of-stock merchandise spotlight shopper re-entry into public life:

  • 32% of shoppers mentioned they skilled out of inventory merchandise when procuring on Amazon Prime Day.
  • The largest classes impacted by out-of-stock merchandise have been Amazon system equipment (Kindle, Alexa, Fireplace Stick, and many others.) (37%), magnificence merchandise (22%), automotive/Powersports (20%) and well being/private care (20%).
  • 78% of shoppers spent the identical or extra on Amazon Prime Day this yr in comparison with final yr, with 46% of shoppers saying they spent extra.

Magnificence continues to be a large progress vertical for Amazon and was one of many prime performing classes throughout this yr’s Prime Day. As individuals return to social gatherings, gross sales of self-care merchandise akin to deodorant, tooth whitener, and nail polish are on the rise.

Shoppers participated in different retailers’ deal days, however Amazon Prime Day remains to be #1:

  • 60% of respondents made a purchase order on Prime Day
  • Shoppers participated in different deal days from Walmart (35%), Goal (26%), Greatest Purchase (15%), and Ebay (8%)
  • 73% of shoppers went to Amazon to search for offers first

Amazon stays the primary place shoppers look when they’re searching for reductions. Nevertheless, Prime Day is not only for Amazon. This yr, different retailers like Walmart, Goal, Greatest Purchase and Ebay launched their very own competing deal days, providing gross sales on every part from groceries to attire. Though Prime Day nonetheless reigns supreme, Amazon not owns all the share of the market.

Shoppers more and more use Prime Day for back-to-school procuring wants:

  • 38% of shoppers mentioned they made back-to-school purchases on Prime Day this yr
  • 23% of shoppers mentioned they made back-to-school purchases on Prime Day when requested the identical query in a 2018 survey

Shoppers are getting forward of back-to-school procuring this yr in comparison with final yr when in-person studying protocols have been extra unsure. Throughout back-to-school procuring season, retailers can use know-how powered by synthetic intelligence (AI) and machine studying (ML) to drive correct demand and assortments to cut back waste with dynamic segmentation. Blue Yonder’s Demand Planning resolution ingests a whole lot of demand-driving variables and makes use of ML to supply a novel demand projection with calculated enterprise affect and threat. This allows increased planner productiveness, higher stock administration and an improved understanding of demand drivers and buyer habits.

Regardless of Amazon’s investments in reverse logistics, shoppers don’t intend to return gadgets bought on Prime Day:

  • 76% of buyers didn’t buy any gadgets with plans to return them (a number of sizes, types, and many others.)
  • 51% of shoppers nonetheless desire to return Amazon gadgets by UPS; 25% desire Kohl’s, 11% desire Amazon Hub Lockers and 9% desire Amazon bodily retail places

The pandemic pressured retailers to spend money on their returns processes. Along with making the returns course of as seamless as doable, retailers can use know-how to attenuate returns within the first place. As an illustration, AI and ML can be utilized to create return-conscious pricing fashions, that are particularly efficient throughout industry-wide gross sales occasions, like Prime Day, the place manufacturers are closely discounting style gadgets.

For instance, if a graphic tee prices $60 or $70, and it’s not precisely to a buyer’s style, they’re going to need their a reimbursement. However at $25, returning the merchandise won’t be definitely worth the shopper’s time. AI and ML might help predict one of the best value to attenuate returns.

The place does the retail {industry} go from right here?

Amazon Prime Day offered worthwhile insights for retailers as in-store procuring continues to return.

At first, retailers must prepared their shops as a result of shoppers are returning to in-person procuring. Making certain front-end and back-end applied sciences can meet shopper wants from stock to returns will probably be essential. Moreover, back-to-school is on the horizon and shoppers are procuring sooner than years previous. Retailers ought to take into account adopting AI-powered demand planning options to make sure they’ve the fitting stock and assortment throughout this vital procuring interval. Lastly, returns proceed to be a problem for retailers and shoppers alike. Retailers ought to take into account using an end-to-end provide chain resolution to bolster their returns course of and higher the expertise for each retailers and prospects alike. This, mixed with return-conscious pricing, might help decrease returns and maximize income.

Retailers, what did Amazon Prime Day 2021 train you?