30% search Amazon first vs. only 13% search Google

[AllenCrawley]

It's becoming more and more evident that if you sell products online you should be utilizing Amazon's platform. Diversity in where your customers are coming from is vitally important. MJ mentioned in a recent post that if most of your revenue is coming form one source you're subject to a lower valuation due to the added risk.

"Thirty percent of online shoppers research a product on Amazon before they purchase it, another sign of Amazon’s incredible dominance in e-commerce, according to new research from Forrester.


“Ever since Amazon.com opened for business in July 1995, its impact on retail and the broader eBusiness world has waxed and waned,†Forrester analysts Sucharita Mulpuru and Brian K. Walker wrote. “But Amazon has indisputably become a force that cannot be ignored.â€


The new study, titled “Why Amazon Matters Now More Than Ever,†outlines Amazon’s strengths and weaknesses ahead of the company’s earnings report today. Analysts surveyed by FactSet expect Amazon to post $12.9 billion in revenue for its fiscal second quarter, compared to revenues of $9.9 billion a year ago.


Forrester’s study said that while 30 percent of online buyers use Amazon to research first, Google attracted 13 percent. “Amazon is the first stop on the shopping journey for more and more shoppers; in recent years, it appears to have taken market share from search engines like Google, the dominant incumbent in shopping research,†the report said.
The report estimates that Amazon’s U.S. revenue accounted for 9 percent of total U.S. e-commerce revenue in 2001, but as of 2011 that number is now 19 percent. If that trend is still active today, Amazon may command more than 20 percent of U.S. e-commerce.


While much of this is good news for Amazon, it will need to innovate in other areas if it wants to keep growing.
“While it’s anyone’s guess, Forrester believes that further innovation will drive Amazon’s future,†Mulpuru and Walker wrote. “Logical next steps include opening physical stores and distribution centers that enable same-day delivery, and expanding website features for merchant services and product verticals.â€"


Read more at Forrester: 30% of online shoppers research Amazon before buying | VentureBeat

 

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[theDarkness]

This is interesting to me because I literally never search amazon first. I'm going to pay attention to the steps I go through next time and see why that is.

 

[PatrickP]

I search Google first but then look for the listing for amazon.

I can only imagine the guys at google pulling their hair out trying to find ways to NOT have amazon consistently being on the first page if not the first couple results. They are losing millions in PPC dollars because people are realizing they don't need the PPC nor even SEO to have their product appear in the first couple results. They just need to get their product up on Amazon.

 

[AllenCrawley]

Yes, Google has to be going crazy about this. If I'm shopping for something in particular I almost always search amazon first. I may not always buy from amazon but I'm really looking for product reviews.

 

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[PatrickP]

They whacked Overstock after they got themselves in first place for quite a few VERY valuable search terms. They knocked Overstock back to page 10 or so on each search term by punishing them for having so many links to .edu sites. they had 'purchased' the links by offering incentives to college students for posing links to Overstock's website.

Overstock has never recovered from this.

 

[Leonard Dollars]

I check amazon for reviews too. Doubt google is too worried. I think their biggest draw is turning people who's intent was just a regular search into shoppers.

 

[PatrickP]

Yes they are VERY worried. They have actually stated that. They are losing MILLIONS in PPC.

 

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[The-J]

Yes they are VERY worried. They have actually stated that. They are losing MILLIONS in PPC.

It's things like this that make me think that SEO is a big scam.

It's one of those things that will only work for a short time window and people who constantly try to exploit it are chasing money...

 

[AlasdairM]

It's things like this that make me think that SEO is a big scam.

It's one of those things that will only work for a short time window and people who constantly try to exploit it are chasing money...

Agreed! A huge pain in the a*s. I no longer spend any time on SEO -- I just use shopping carts etc. that are naturally well optimised -- and instead focus on conversion and customer service. This seems to be better for the customer...and me.

 

[CommonCents]

Wow, that's a big number. Goes to show people really value good honest input by peers. I'm working on a project now that deals with that quite a bit. You'd think FB would be all over this, a way to work peer recommendations and get into commerce.

 

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[The-J]

Agreed! A huge pain in the a*s. I no longer spend any time on SEO -- I just use shopping carts etc. that are naturally well optimised -- and instead focus on conversion and customer service. This seems to be better for the customer...and me.

I would be lying if I said I spent zero time on SEO, but all my SEO is organic. I post links where people will actually want to click on them. I write content that I want to write. I use relevant keywords and all my social media is for people to actually follow me.

 

[AllenCrawley]

I'm not sure what you mean by SEO is a scam but understand Google doesn't like anyone to do any SEO period. Whitehat, blackhat, grayhat, whatever. Don't be fooled by google when they say they just want a better user experience. I'm sure that was the case once upon a time but now they have shareholders they are accountable to. Their constant algo changes discourage people from optimizing their site and their rankings and they hope so much so that those same people will switch to PPC. I read somewhere recently that Google is working towards giving higher organic rankings to those that are also doing PPC.

I check amazon for reviews too. Doubt google is too worried. I think their biggest draw is turning people who's intent was just a regular search into shoppers.

Google is definitely worried...

Forget Apple, Forget Facebook: Here's The One Company That Actually Terrifies Google Execs - Business Insider