We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Reports: Pandemic spurs shift in consumers' views on Amazon, drives long-term changes in retail

Reports: Pandemic spurs shift in consumers' views on Amazon, drives long-term changes in retail

Tech survey shows Amazon is stronger than ever; trade association survey highlights long-term implications of the pandemic on the future of retail.

March 12, 2021
Victoria Kickham
No Comments

The Covid-19 pandemic has changed consumers’ views of online retail giant Amazon.com and continues to reshape the way people shop, according to data from Austin, Texas-based last-mile technology firm Convey, released this week.

Convey’s second annual survey of more than 1,000 U.S. consumers finds that shoppers are relying on Amazon more than ever, and that their sentiment has grown more positive during the pandemic. Drawn in by fast, free shipping, a majority of consumers (52%) now say they think Amazon has a positive effect on the retail industry and that their former concerns about the online giant’s environmental impact are dwindling. What’s more, the survey found that the online retailer is succeeding despite consumers’ overwhelming desire to support small businesses: Although 95% of survey respondents said it’s important to support small businesses that have been hurt by the pandemic, more than 40% of them admit to buying at least half of all their goods from Amazon.

“With Amazon providing a lifeline during a year of store shutdowns and safety precautions, more consumers have positive attitudes about the company than previously,” the researchers wrote, pointing to some survey highlights:

  • 42% of consumers buy the majority of their goods on Amazon, up 83% since the onset of the pandemic.
  • The number of people who buy 75% to 100% of their products on Amazon has doubled over the past year, reaching 11%.

The survey also found that more than a third of consumers (36%) now say Amazon has a positive impact on the environment, a jump of 36%, according to the research. Just 20% say Amazon has been bad for the environment—a decrease of 25% over last year’s survey. Younger shoppers are more likely to be skeptical of Amazon’s impact, with 32% of younger shoppers saying that Amazon has a negative impact on the environment.

Respondents also listed reasons why they often choose Amazon over smaller suppliers:

  • Lower costs: They say they are avoiding the higher item costs (35%), higher shipping costs (23%), and longer shipping times (21%) associated with smaller firms.
  • Reliability: Nearly half of Americans (49%) shop at Amazon because they “trust their packages will be delivered when promised” and 19% said they choose Amazon for its “proactive communication during delivery,” according to the survey.

The rapid acceleration of e-commerce and growing importance of environmental and social impacts among retailers also ranked high in a separate study from the Retail Industry Leaders Association (RIILA), also released this week. Conducted in partnership wth consulting firm McKinsey & Company, RILA’s Retail Speaks: Seven Imperatives for the Retail Industry examines the Covid-19 pandemic’s long-term impact on the future of retail.

“While the fundamentals are largely unchanged, customers’ expectations are now exponentially higher and retailers are rising to the challenge,” RILA President Brian Dodge said in a statement announcing the report’s findings. “Leading retailers are embracing the opportunity to win new customers by leveraging lessons learned from the past year and investing in strategies to serve customers well wherever and whenever they shop.”

Among those strategies is a sharper focus on developing a “seamless” omnichannel experience, setting ambitious targets for devliery times, and developing a “purpose-driven approach” to environmental, social, and governance (ESG) criteria—factors many corporations are using to measure the sustainability and societal effects of their business. A third of RILA survey respondents said they had stopped using a brand based on its societal actions, for instance, and more than 70% said they would lose trust in a brand “forever” if it placed profits over people.

“Being a purpose-led brand always starts with the ‘why’ behind what we are doing. People will not only buy from but also buy into brands that stand up for their values,” according to Javier Quiñones, president and CSO, IKEA U.S, who is quoted in the research.

The RILA report was developed from a benchmarking survey conducted with executives from 30 U.S. companies, augmented by interviews with retail CEOs and research from McKinsey & Company, the groups said.

Logistics
KEYWORDS Amazon RILA
  • Related Articles

    Retail sales drop slightly in February, but long-term outlook stays strong

    Report: Pandemic spurs evolution in logistics planning strategy

    U.S. consumers drove retail sales increase in August, NRF says

Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.

Recent Articles by Victoria Kickham

Economy, technology take center stage at JumpStart

Q1 Outlook: Carriers will continue to compete for limited demand

Government agencies release ‘blueprint’ for decarbonizing transportation sector

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing