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Online shoppers prioritise product quality and authenticity in key categories including Health & Personal Care, PC & Electronics, and Grocery
Sellers, distributors, and online shopping stores essential for creating trustworthy shopping experience for online shoppers
E-commerce stores need to remain competitive to attract and retain customers as online shoppers continue to seek best deals across stores
SINGAPORE - Media OutReach - 3 July 2023 - (NASDAQ: AMZN) – A survey by Amazon Singapore, in collaboration with YouGov, revealed that consumers are placing a growing importance on product quality and authenticity as cost remains the top consideration for online purchases. The survey also shed light on local shoppers’ perceptions around the responsibility of sellers and e-commerce stores for ensuring quality and authentic products, as well as how competitive prices and discounts take priority over brand loyalty among local consumers.
The survey of 1,058 residents in Singapore sought to understand local consumers’ online shopping behaviors while investigating the reasons for customers’ satisfaction and trust with online shopping channels. Findings from the survey highlighted several key insights.
"At Amazon Singapore, we combine affordability, product quality, and authenticity to surpass customer expectations," said Leo Laforgia, Country Manager, Amazon Singapore. "This commitment extends to Prime Day, where we offer exclusive deals, exciting product launches, and unmatched savings for Prime members, showcasing our dedication to offering a quality shopping experience that can be trusted and saves our customers time and cost!”
Insight #1: There is growing emphasis and value placed on product quality and authenticity, with a large majority of shoppers (80%) willing to pay a higher price.
While 70% of online shoppers said cost remains a key consideration for online purchases, 80% are willing to pay a higher price to ensure product quality and authenticity.
More than half of online shoppers surveyed said product quality (58%) has become a more important consideration for them compared to two years ago, followed by product cost (57%) and shipping cost (47%). Apart from quality and cost considerations, customer reviews (44%) and authenticity (39%) ranked in the top five factors in terms of growing importance among consumers when making an online purchase.
The findings suggest that consumers increasingly want assurances that their purchases are as advertised within the product information and seek to find the best balance among product quality, price, and authenticity, beyond simply purchasing items at the lowest cost.
The survey also identified key categories where online shoppers prioritize product quality and authenticity over cost. The top categories include Health & Personal Care (41%), PC & Electronics (38%). This trend signifies a growing awareness and appreciation for value beyond the purchase price alone, with consumers increasingly looking to products that are authentic, reliable and of high quality, especially when it comes to purchasing items in the above categories.
This trend is more significant among online shoppers aged 25 to 34 years, where almost two in three (63%) say product quality has become more important to them. However, less than half (49%) of online shoppers aged 35-44 years agree with the above findings.
To ensure product quality and authenticity, Amazon Singapore employs various measures such as Amazon's Brand Registry program which provides proactive protections that stop infringing listings or inaccurate content, or Amazon’s seller verification process, where sellers are required to provide detailed information about their business, including proof of their identity and contact information. Amazon Singapore is dedicated to enhancing product quality and authenticity on their store by continuously updating their comprehensive guidelines to provide guarantees for customers.
Insight #2: Sellers, distributors, and e-commerce stores need to collaborate to establish consumer trust.
More than half of e-commerce shoppers (51%) believe that some responsibility of ensuring product authenticity lies with the seller or distributor, followed by the e-commerce stores (43%). About one in three (32%) believe it is a shared responsibility between the e-commerce stores, sellers, and consumers. Only 7% of shoppers feel personally responsible for verifying the authenticity of a product, indicating a heavy reliance on the store and sellers to ensure the integrity of their purchases.
The findings also indicate a strong demand for e-commerce stores to do more to increase trust in the business. The majority (64%) of e-commerce shoppers expressed a desire for stores to provide more ways for consumers to verify the authenticity of products. Survey participants also emphasized the need for reliable customer service (62%), while 57% called for stricter screening measures for sellers.
In line with consumers’ growing demands for more action to safeguard customers on e-commerce stores, Amazon Singapore is actively working towards enhancing authenticity verification mechanisms, providing reliable customer service, and implementing stringent screening processes for sellers. According to Amazon’s Brand Protection report, 800,000 attempts to create fraudulent accounts have been thwarted, significantly reducing the number of bad actors attempting to list products for sale. This marks a significant decline from 2.5 million attempts in 2021 and 6 million attempts in 2020.
Locally, the Inter-Ministry Committee on Scams (IMCS) released the annual E-commerce Marketplace Transaction Safety Ratings (TSR), where Amazon Singapore maintained its leading position with a perfect score of four out of four ticks, a result of the robust anti-scam features in place to secure e-commerce transactions. Amazon Singapore continues to advocate for consumer-centric approaches and works closely with sellers, distributors, and other partners to implement robust measures that guarantee product quality and authenticity.
Insight #3: Shopping deals continue to reign supreme but desire for value-for-money products comes close second.
Discounts, promotions, and sales emerged as the top priority when selecting stores for e-commerce shoppers, with 62% indicating their preference for money-saving opportunities. Consumers are actively seeking cost-effective options and are willing to explore different stores to find the best deals.
Furthermore, 61% of respondents highlighted their desire for value-for-money products, emphasizing the importance of offering high-quality products at reasonable prices. This consumer demand for value demonstrates the need for e-commerce stores to curate products that deliver a balance between quality and affordability.
Competitive pricing was also a significant factor for 59% of participants, indicating that consumers actively compare prices across different stores to ensure they are getting the best possible deal. This highlights the need for e-commerce stores to remain competitive and regularly assess their pricing strategies to attract and retain customers.
Amazon Prime Day returns to Singapore on July 11-12, offering a plethora of deals, new product launches, and entertaining experiences for Prime members, enabling them to spend less and smile more. Amazon Singapore will also host a carnival-style event at Capitol Singapore, providing visitors with a firsthand glimpse of the excitement and a sneak peek at upcoming Prime Day deals.
Find Prime Day Around the World
Prime Day will kick off on 11 July in Australia, Austria, Belgium, Brazil, Canada, China, Egypt, France, Germany, Italy, Japan, Luxembourg, Mexico, Netherlands, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Turkey, and United Arab Emirates, the UK, and the U.S. Prime members in India can shop Prime Day later this summer.
Every Day Made Better with Amazon Prime
Amazon Prime was designed to make your life better every single day. Over 200 million paid members around the world enjoy the many benefits of Prime, including the best of shopping and entertainment. In Singapore, Prime membership includes unlimited access to award-winning movies and TV episodes with Prime Video, unlimited access to video game benefits with Prime Gaming, Prime Day, and more. Prime was built on the foundation of unlimited fast, free shipping. Prime members enjoy access to free one-day delivery on domestic Prime eligible selection on Amazon.sg, free same-day delivery on selected delivery windows for Amazon Fresh & Fast on purchases made on Amazon Fresh, Watsons, and Little Farms, as well as early access to deals and exclusive deals. Prime is S$2.99 per month. Start a 30-day free trial of Prime at Amazon.sg/prime.
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