With low consumer confidence and limited household income it is not surprising that some shoppers are looking to for alternative channels for their food and groceries in an attempt to make savings. Although the Big Four supermarkets remain the most popular channels, alternative channels such as Amazon Groceries aim to tempt shoppers away from their usual supermarket choice. The internet has allowed for the emergence of sites offering bulk and discount groceries without the need for physical stores, thus keeping costs low. Launched in 1995, Amazon is the world’s largest online retailer with 164 million active customers and is also Britain’s highest rated brand. It stocks over 23,000 top grocery lines and allows customers to take advantage of the savings and convenience provided by bulk-buying items. Amazon also provides a marketplace for third party sellers to sell through. This report focuses upon online shoppers’ awareness and usage of Amazon Groceries. This report will: -Provide you with a brief background to Amazon.co.uk -Give a detailed outline of Amazon’s current features and how useful shoppers find these. -Summarise Amazon’s Grocery proposition, including awareness and usage as well as what shoppers use Amazon Groceries for. -Consider Amazon Groceries offering at a category level. This includes a category breakdown of penetration as well as what items are actually sold by Amazon rather than third party sellers. -Look at the uptake and barriers to Subscribe & Save. -Highlight issues found from first hand tests of Amazon Groceries. -Outline some of the other non-standard grocery channels propositions available to shoppers.
- 1. August 201282 Pages950Non-Standard Grocery Channels(Amazon
& Beyond)SAMPLE EXTRACT Evolution Insights Ltd Prospect House
32 Sovereign StreetLeedsLS1 4BJ Tel: 0113 389 1038
http://www.evolution-insights.comwww.evolution-insights.com1
2. About Evolution InsightsEvolution is a leading research
consultancy specialising in shopper motivation and behaviour. We
deliver off-the-shelf, tailored and bespokeresearch for
manufacturers, retailers and agencies.Our research and analysis
helps Evolution offer a range of products & services forclients
develop targeted shopperclients in the field of shopper
research:-marketing initiatives designed to Off-the-shelf
researchinfluence shoppers at the point ofpurchase. Evolutions off
the shelf research publications deliver affordable insight into
shopper motivation and behaviours in UK food, drink and grocery
Insight Plus Insight Plus offers your business the opportunity to
engage in any of our We use a range of researchregular shopper
research projects in advance of publication, tailoring the
methodologies to discover genuine scope to suit your needs
insights. Our research incorporates a broad spectrum of robust
Bespoke Consulting qualitative and quantitative research
techniques. As publishers of research, we are able to draw upon a
wealth of existing proprietary data for consulting projectsAs a
leading publisher of shopper helping to better inform and
shaperesearch, we are ideally placed to any further research
requirements.offer your business actionableshopper insight.Further
information is available at ourwebsite
http://www.evolution-insights.comVisit and sign up for Reflections,
our freequarterly newsletter offering analysis andcommentary on
topical issueswww.evolution-insights.com 2 3. ContentsFigures and
graphs5 Problems with Subscribe & Save40Bulk Buying 41Key
findings and executive summary7 Willingness to buy in bulk in store
and online42What this report will do for you8 Bulk Buying
Online45Research conducted on Amazon.co.uk Grocery 12 Summary
46Non-standard Grocery Channels: Introduction13 Amazon.co.uk:
Category Level Analysis 47Consumer Confidence14
Introduction48Income and Attitudes 15 Category
Penetration49Channels 16 Subcategories 50Subcategories Breakdown
51Amazon.co.uk: Introduction 17 Sold by Amazon54Amazon.co.uk 18
International, Organic & Speciality Food56Timeline of major
launches 19 Home Care & Cleaning57Amazon Marketplace 20 Beer,
Wine & Spirits58Fulfilment by Amazon 21 Top 100 59Delivery 22
Summary 61Amazon Lockers 25Pre-ordering and Product Availability
Alerts 26 Amazon.co.uk: Test Shops621-Click27 Introduction63Amazon
Prime 28 Shop 164Amazon Accounts29 Shop 265Shopping via smartphones
and tablets 30 Shop 366Popularity of Features 31 Summary Table
67Summary 68Amazon.co.uk: Groceries32Introduction 33 Other
Non-Standard Grocery Channel Propositions 69Awareness and Usage34
Introduction70Amazon Shoppers Behaviour 36 Shorters Club 71Brands
37 Shorters Club Test Shop 72Subscribe & Save 38 Costco73Uptake
of Subscribe & Save 39 Macro 74 www.evolution-insights.com 3 4.
ContentsApproved Food and Food Bargains 75Viking76Staples 77Summary
78Methodology 79Glossary83www.evolution-insights.com 4 5. Figures
and graphswww.evolution-insights.com 5 6. Figures and
graphsPageTypeTitle14Graph Consumer Confidence15Graph Average UK
Household Income Tracker15Graph Current Food & Grocery Spend
Attitudes18Graph Top 20 Brands first half 2012: UK (Based on
Index). YouGov.19FigureTimeline of major launches23FigureDelivery
opinions29Graph Amazon Accounts31FigurePopularity of
Features34Graph Awareness and Usage35Graph Awareness and Usage
(2)36FigureAmazon Shoppers Behaviours37FigureBrands39FigureUptake
of Subscribe & Save42Graph Willingness to buy in bulk in store
and online by category43Graph Willingness to buy in bulk in store
and online by category (2)44Graph Willingness to buy in bulk in
store and online by category (3)45Graph I am likely to buy more
items in bulk online than in store due to ease of
transportation49Graph Category Penetration51Table Subcategory
Breakdown52Table Subcategory Breakdown(2)53Table Subcategory
Breakdown (3)54FigureSold by Amazon55FigureSold by Amazon by
category59FigureTop 10060FigureTop 100 (2)64FigureShop
165FigureShop 266FigureShop 367Table Summary Table72FigureShorters
Club Test Shopwww.evolution-insights.com 6 7. Key findings and
executive summary What this report will do for youThis report will:
Provide you with a brief background to Amazon.co.uk.Give a detailed
outline of Amazons current features and how useful shoppers find
these. Summarise Amazons Grocery proposition, includingawareness
and usage as well as what shoppers use Amazon Groceries
for.Consider Amazon Groceries offering at a category level.
Thisincludes a category breakdown of penetration as well as what
items are actually sold by Amazon rather than thirdparty
sellers.Look at the uptake and barriers to Subscribe & Save.
Highlight issues found from first hand tests of Amazon Groceries.
Outline some of the other non-standard grocery channels
propositions available to shoppers.www.evolution-insights.com 7 8.
Research conducted on Amazon.co.uk GroceryDates are given for when
research wasconducted on Amazon.co.uk Grocery as thenumber of items
listed on Amazon changesconstantly. As such, our figures are given
as asnapshot of Amazon on the date given. Weassume that these are a
fair generalrepresentation of Amazon.co.uk Grocery.This also
applies for the most popular itemsbought by shoppers on the given
dates. Webelieve that what we observed from the site atthese times
are examples of average shoppingbehaviour on
Amazon.co.uk/grocery.www.evolution-insights.com 8 9. Amazon.co.uk:
Introduction Timeline of major launches19981999 2000 20012002
20032004 2007 20082009 2010 2011Amazon.co.ukDVD/Video
StoreMarketplaceDVD RentalHealth and Beauty Musicallaunched opened
launchedService Store launched Instruments and Electronics and
launched DJ Store launched Music Storeopened Photo StoreHome
andSports and LeisureOffice Supplies Amazon App for openedGarden
StoreStore openedStore openedAndroid launched openedDIY and Tools
Software andGrocery StoreStore launched Video Games
launchedCheckout byJewellery andLighting Store Store openedAmazon
launchedWatches StoreopenedToys and GamesKindle Storeopened Store
openedClothing StorelaunchedlaunchedOutlet StoreAll-New
KindleAmazon Prime launchedopenedlaunched Print on demandPet
Supplies Store for books launchedShoe andBaby StorelaunchedHandbag
Store Amazon Lockersopened opened Amazon launched MP3 Store
Windowshoplaunched Car andfor iPadShoes Store Motorbike Store
launchedopened opened Kindle available in UKAmazon.co.uk
ShoppingApp for iPhone and iPodtouch
launchedwww.evolution-insights.com 9 10. Amazon.co.uk: Introduction
DeliveryAmazon offers several Evening Delivery 14.99different
delivery options Express Delivery 8.99 perper delivery. 7.48 per
unit delivery. 4.49 per unit forfor items sold specifically for
Amazon Prime members.Amazon Prime members.by Amazon. These
mayOrders before the EveningOrders before the Expressnot apply to
third partydeadline are guaranteed to deadline guaranteed tosellers
on Marketplace, arrive on the same day.arrive by 1pm the
followingDelivered 18:30-21:30unless they are Fulfilled day.
Offered on almost allweekdays and 14:30-17:30 atdeliveries to
mainland UKby Amazon. the weekend. Only availableaddresses.within
certain postcodes.www.evolution-insights.com10 11. Amazon.co.uk:
Introduction 1-Click1-Click offers a fast and easy way for shoppers
to orderfrom Amazon.co.uk. 1-Click is automatically enabledafter a
shopper has placed their first order throughAmazon.co.uk. After
this order, a Buy it now with 1-Click button will be on the
right-hand side of any ProductDetail page for items listed by
Amazon and Amazon Prothird party sellers. This will check the order
out anddispatch it to the default address, gathered from
theprevious order.A 1-Click order can be changed or cancelled
within 30minutes of placing it.FREE Super Saver Delivery is not
available for 1-Clickorders.www.evolution-insights.com 11 12.
Amazon.co.uk: Introduction Amazon AccountsWhat kind of Amazon
account do you have? 80164 Standard UnsurePrime The majority of
Amazon shoppers have a standard account. Just 4% have an Amazon
Primeaccount. Shoppers may feel that the charge is too high or that
they just wont use their account enough to take full advantage of
the Prime benefits. www.evolution-insights.com12 13. Amazon.co.uk:
Category Level Analysis Sold by Amazon 18% 82%Only 18%* of all food
and grocery items on Amazon.co.uk Grocery are actually sold by
Amazon.This means that shoppers only benefit from Amazon postage
deals or Amazon Prime membership on less than one in five of all
available food and grocery items. Including those third party food
and grocery items which are fulfilled by Amazon, only 20%* of all
items listed on Amazon.co.ukGrocery are eligible for FREE Super
Saver Delivery. Some shoppers are aware of these differences
between sellers, with 36% of Amazon food andgrocery shoppers only
buying directly from Amazon and avoiding third party sellers. *data
gathered on 12.07.12www.evolution-insights.com 13 14. Amazon.co.uk:
Test Shops Shop 1Shop One No. of items 23 itemsMissing basic items
such as milk and butter. No standard milk just Time 18:02:70UHT
milk, evaporated, condensed and milk portions. Specialistbutters
available, such as Hazelnut, Ghee and Raw Cashew Butterrather than
standard butter.Cost 99.37 Postage 81.62Brand repertoire is limited
so alternative brands were chosen forTotal 180.99most items.(%
Postage+82%)Can only buy certain items in bulk, such as a pack of 8
DolmioMeatball Bolognese Sauce rather than just one.Having to buy
from several different sellers resulted in someextreme high
delivery prices, for example 9.02 delivery on 1.42bag of German
Mamma Lucia Cannelloni Pasta, 250g.www.evolution-insights.com14 15.
Methodologywww.evolution-insights.com 15 16. MethodologyEvolutions
methodology Evolution carried out a preliminary survey ofaround 100
shoppers to test questions for themain survey.Secondary
andPreliminary Detailed secondary and desk research isdesk research
quantitative survey conducted to define the topic area, macro
driversand trends, scope and examples within theresearch topic.
Initial insights gained are used to help furtherdesign the main
survey.Main quantitative A main survey is completed by at least
1,000 UKTest Shopsadults who are the primary household shopper for
surveyfood & grocery. Test shops were carried out to gain first
handexperience of Amazon.co.uk/grocery Comprehensive and detailed
assessment of all thedata received was then used to uncover
insights. Insights Throughout this process, primary research
wassupported by secondary research drawing onEvolutions proprietary
databases, nationalstatistics, news and industry resources.
www.evolution-insights.com 16 17. Methodology: quantitative
research - surveyTopics of questions in quantitative survey
Demographic profiling Detailed shopper insights weregained from a
survey of 1,027primary shoppers. The samples Usefulness of Amazons
featureswere fully representative of the UKpopulation. Opinions
about deliveries The survey contained 10 questionsrelating to
topics outlined to theleft in addition to standard Awareness and
usage of amazon for non-food and grocery items demographic
profiling questions The questions were designed toAwareness and
usage of amazon for food and grocery itemsgive
maximuminsightintoshoppersmotivationandbehaviour Barriers to Amazon
Groceries The survey was carried out duringthe week commencing 6th
August Category penetration 2012.Shopping behaviours on Amazon
Groceries Awareness and usage of Subscribe & Save
www.evolution-insights.com 17 18. Methodology: Test Shops To see
just how practical Amazon Groceries is for food and grocery
shopping and to gainprimary experience of how it operates testshops
were conducted upon the site. Shoppinglists were taken from The
Grocer 33, a list of 33 everyday food and grocery items. The
priceand quantity of items were recorded along withpostage charges
for those items sold by third party sellers. Unavailable items were
alsonoted along with the time it took to complete the online
grocery. Three separate shops wereconducted by an non-online
shopper allowing for averages to be calculated. Any otherproblems
or comments are also given. All tests were conducted in the week
commencing23.07.12. 19. Contact usEvolution Insights LtdProspect
House32 Sovereign Street LeedsLS1 4BJTelephone: 0113 336 6000
e-mail: [email protected] Web:
http://www.evolution-insights.comCompany No. 07006001Country of
Incorporation: United Kingdom Evolution Insights Ltd. All rights
reserved 19
