Amazon narrows ‘expectation gap’ post-Prime Day

Amazon may have struggled to meet the high expectations of Australian consumers when it launched Down Under, but consumer sentiment towards the company is improving, according to new research from Starcom.

Starcom found that the expectation gap around Amazon’s Australian offering narrowed in the lead up to the country’s first Prime Day in July. Eight-eight per cent of social media mentions of Prime Day were positive during June and July, and positive sentiment towards the company improved to 72 per cent post-Prime Day.

“In the digital age, it is more tempting than ever to take a short-term view, to elevate the importance of immediate consumer actions above long-term brand building,” Starcom research director Nicole Conroy said.

“Our research has found that Australians are increasingly positive towards Amazon, are thinking differently about Amazon and visit the site with a shopping mission in mind. It is the online shopping experience however, and the reduced Prime Australia offering, that are holding back Amazon’s growth here.”

Conroy noted that while consumers were excited about Prime Day, the pared-back membership program is missing many of the features of the international version, which has deterred the majority of Australians from joining, despite the lower price point.

“However for those that have joined, the change in shopping behaviour is immediate,” Conroy said.

“Starcom believes that Amazon will need to bring a US-style Prime offer to Australia to drive Prime membership to a significant degree, and that by doing so Amazon will accelerate growth to a degree that significantly impacts Australian retail.”

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