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.
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.
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.
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.