Market Overview

JDA Survey Finds Technical Problems on Amazon Prime Day Hurt E-Commerce Giant

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52 percent of respondents experienced technical difficulties, causing
more than a quarter of shoppers to leave purchases out of online sales
baskets

A new JDA
Software, Inc.
survey of
over 1,000 U.S. consumers found that 27 percent of respondents who
experienced technical issues on Amazon Prime Day either gave up without
making purchases or purchased less than they had planned. A total of 52
percent of respondents experienced technical difficulties overall during
the two-day flash sale earlier this week.

"Our survey revealed that the technical glitches on Amazon's website and
app threatened not only its 36-hour Prime Day sale, but also its
reputation as a reliable, online retailer," said JoAnn Martin, vice
president, retail industry strategy, North America at JDA. "With
heightened expectations, customers are looking for a frictionless
experience when making purchases and they will give their money, and
loyalty, to those retailers that can deliver."

How people shopped during Amazon Prime Day

According to the survey, the top platforms to shop on Amazon Prime Day
were mobile/tablet (60 percent) or desktop or laptop (53 percent). Only
nine percent of the total respondents said they shopped through Whole
Foods. Of those who did, 75 percent said that they regularly shop at
Whole Foods already and benefited from the discounts. The other 25
percent purposely shopped at Whole Foods during Amazon Prime Day to take
advantage of the discounts.

"Prime Day is clearly still an online event, despite Amazon's attempt to
integrate Whole Foods into this year's promotions," said Martin. "Since
those who already are regular Whole Food shoppers were the ones who
benefitted from the discounts, it wasn't driving additional footfall to
brick-and-mortar locations."

Why people were shopping on Amazon Prime Day

The majority of respondents (74 percent) said they shopped for
themselves on Amazon Prime Day. Discounts were the top driver, with 62
percent of respondents saying they were their motivator to shop on
Amazon Prime Day.

Of those who were able to make purchases, when asked what best described
their Amazon shopping experience:

  • 40 percent of survey respondents said they made unplanned purchases
    based on items on sale.
  • 31 percent of survey respondents said they planned out purchases ahead
    of time.
  • 19 percent of survey respondents said all of their items were
    discounted.
  • 10 percent of survey respondents said they planned out purchases ahead
    of time, but made purchases based on what was on sale, and ultimately,
    all of their items were discounted.

"Similar to Chinese e-commerce giant Alibaba's Singles Day in the fall,
Amazon Prime Day is a way for shoppers to buy items for themselves, as
part of the ‘treat yourself' movement. It shows little effect on
spending for other shopping seasons, like the holidays or
back-to-school," said Martin. "Even given the hype and teasers from
Amazon ahead of the event, consumers are still making purchases on what
is available and on sale, allowing Amazon to get rid of slower moving
inventory or overstocked items, which is a smart move for all retailers
when considering a flash sale."

While the retail industry continues to struggle with returns, Amazon
Prime Day shoppers plan to keep the items, with 84 percent of
respondents stating that they did not purchase items with plans to
return some of them (e.g., buying multiple sizes). However, men were
slightly more likely (22 percent) to purchase items with plans to return
them than women (10 percent).

Effects on Back-to-School & Holiday Shopping

According to the survey, Amazon Prime Day was not a big driver for
back-to-school (BTS) shopping, with 77 percent of respondents stating
they didn't make any purchases specifically for BTS. This changed given
the age range of the respondent, with 32 percent of 18-to-29-year-olds
and 28.08 percent of 30-to-44-year-olds stating that they used the sale
to buy products for BTS.

Additionally, Amazon Prime Day also had little influence on respondents'
overall holiday spending, with 52 percent saying it will not influence
holiday spending at all.

Methodology

JDA collected responses from 1,100 US-based consumers, 18 years and
older, via a third-party provider to determine the findings of its 2018
Amazon Prime Day survey. The frequency of Amazon shopping varied, with
32 percent of respondents claiming to shop Amazon every few weeks.

Tweet this: #Amazon's
tech glitches hurt where it counts: its wallet. #JDASurvey finds 27% of
consumers had tech issues & gave up on #AmazonPrimeDay without making
purchases or purchased less http://bit.ly/2zRHS6B

About JDA Software, Inc.

JDA Software is the leading supply chain software provider powering
today's digital transformations. We help companies optimize delivery to
customers by enabling them to predict and shape demand, fulfill faster
and more intelligently, and improve customer experiences and loyalty.
More than 4,000 global customers use our unmatched end-to-end software
and SaaS solutions to unify and shorten their supply chains, increase
speed of execution, and profitably deliver to their customers. Our
world-class client roster includes 75 of the top 100 retailers, 77 of
the top 100 consumer goods companies, and 8 of the top 10 global 3PLs.
Running JDA, you can plan to deliver. www.jda.com

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