According to a recent survey of RBC Capital, people that shop on Amazon and get delivery on the same day are likely to shop more on it when compared to shoppers that don’t get delivery on the same day. This survey reveals the reason for Amazon’s heavy investment in delivery and supply chain networks to reduce delivery time. During April this year it announced that investment of $800 million will be made in a single quarter to ensure that all its Prime members get one day free shipping by default which cuts down from its current two day free shipping promise.
The survey which was conducted on 1900 respondents brought out several interesting details. 48 % of same-day customers stated that they spent an average of $800 every year on Amazon in comparison with 33 % customers that did not have the same day shipping option. People that are part of same day delivery cycle shop more regularly at Amazon and 77 % declared that they use the platform for orders at least 2-3 times on a monthly basis in comparison to 50 % that customers that do not use same day delivery. Amazon shoppers that are part of same day delivery also have a higher intent to buy more from the platform for forthcoming months and maybe year and also have a higher rate of satisfaction.
The survey shows that with its privileged delivery services of One Day, Same Day Delivery and Prime Now (1-2 hour delivery) Amazon is creating both convenience and larger range of selection for its customers that enhances its value proportion when compared to other ecommerce firms in the market. The gap between these privileged customers and that of other Amazon customers has widened across categories of purchase frequency, intent of expenditure and satisfaction. Though the percentage of people who say that they will spend more and often on Amazon has increased the customer satisfaction has drifted downwards.