Amazon Has a Problem: Consumers Don’t Love It as Much as They Used To
Research shows decline in user satisfaction at the e-commerce empire, and analysts see link to search results, product quality
For nearly three decades, Amazon.com Inc. has been defined by its obsession over customers. Recent information, however, suggests that consumer enthusiasm about the largest online retailer in the U.S. has slipped.
The number of Amazon customers who said they were “extremely” or “very satisfied” with the company in a recent survey has fallen, measuring at 79% in 2022, according to investment firm Evercore ISI.
The number reached a low of 65% in 2020 during the pandemic but remains down from a peak of 88% almost a decade ago, the research shows.
Last year, customer satisfaction at Amazon declined to a record low on the American Customer Satisfaction Index, which tracks shopper approval at more than 400 of the largest companies in the U.S.
Amazon scored 78 out of 100, down from 86 out of 100 five years earlier and its worst performance since 2000 — the year the index started tracking the Seattle-based company.
In 2020 and 2021, Amazon fell behind the shopping sites of Costco Wholesale Corp. and Nordstrom Inc.
Consulting firm Brooks Bell earlier this year also surveyed more than 1,000 Amazon customers in the U.S. and found that nearly a third of them reported regularly receiving products late or getting an item of low quality.
That is the first time the firm conducted the study.
Amazon has remained the biggest online retailer in the U.S. by a wide margin, with a loyal base of more than 200 million users globally who pay for Prime memberships, which offer subscribers fast shipping and access to Amazon’s Prime Video streaming service as well as discounts at Whole Foods Market and other perks.
The company is also still a standard setter in shipping times and holds on to about 98% of Prime customers who have subscribed for at least two years, according to Consumer Intelligence Research Partners.
The survey results come as Amazon has seen growth and profit decline and has announced plans to cut jobs ahead of the holiday season, the company’s most important period for sales.
An Amazon spokeswoman said customers are still highly satisfied with their experience, and the company has worked in recent years to improve how customers find products on its website.
Changes have included introducing a product comparison tool and updating its app to enable customers to more easily see the items and programs being searched.
The slip in the surveys could reflect a number of issues, including customer service concerns and frustration over search results, analysts and former employees said.
Amazon has boosted profit by expanding the pool of third-party sellers that use its platform and by embracing advertising whereby sellers pay to appear at the top of searches for certain products.
These two practices have affected the clarity of search results, said Guru Hariharan, a former Amazon manager who is chief executive of e-commerce service provider CommerceIQ.
“For 20 years, it was customer obsession at any cost,” Mr. Hariharan said. “Now, it’s customer obsession at the right cost.”
The company’s expansion of its pool of sellers and search advertising “may have undermined the quality of Amazon’s marketplace,” Evercore ISI said in its report, published this past summer.
The downturn in Amazon’s ratings has happened as some other retailers have improved their e-commerce services in recent years.
The company is aware of some increased customer dissatisfaction and has worked to improve the experience of users on the site in part by employing algorithms more tailored to individual customers based on data such as past search results, according to current and former employees.
Doing so requires a balance between expanding listings to remain “the everything store” and curating shopping results.
The Amazon spokeswoman said the company created more curated selections in online store sections such as Whole Foods Market. And it spent almost $1 billion last year trying to combat counterfeiting, fraud and other abuse of its platform. Such tactics by sellers, as well as fake reviews, can affect search results.
Amazon says that metrics such as high user-ratings of its phone app show positive shopper feedback.
In interviews, some Amazon shoppers expressed disappointment with their shopping experiences at the company even as they continue to see it as an essential part of their lives.
Ken Higgins, 48 years old, said he has been an enthusiastic Amazon Prime member since the service launched in 2005, but several experiences with the company have left him frustrated.
Recently, he tried to repurchase a door spring from Amazon, but when he searched for the item, he couldn’t find it, despite typing in the model number and finding it at other stores.
After a different search, for a baby walker, Mr. Higgins purchased one with Amazon’s two-day shipping promise.
It took a week to be delivered, he said.
“Amazon is so big now, they have the power to say take it or leave it,” said Mr. Higgins, who lives in Tallahassee, Florida. “It feels like they used to care more.”
Jackie Guerrero, an Amazon customer in the San Francisco area, said she recently waited about two weeks for a watch she ordered, and then Amazon emailed her to say it was undeliverable without explanation.
It took her multiple tries to reach someone at the company to receive a refund.
“If you actually want to call and reach someone, it’s really difficult,” Ms. Guerrero said.
Amazon has taken steps to automate aspects of its customer service. At the same time, the company has over the years made it easier to return products through partnerships with stores and opening its own retail spaces.
The Amazon spokeswoman said the company consistently exceeds its goals of answering at least 80% of phone calls in 60 seconds or less and responding to 80% of chat support requests within 30 seconds or less.
Amazon’s “two-day” shipping for Prime members lengthened to as many as six days during the height of the pandemic as the company dealt with a deluge of orders and supplychain constraints, according to research firm NielsenIQ.
Those averages have fallen in recent months to around two days, although in some remote areas, deliveries have taken an extra day or longer, NielsenIQ research shows.
Amazon executives have said shipping times are stabilizing.
The company said its delivery promises fluctuate based on a variety of factors that include time of day, transportation capacity, regional demand and customer location.
‘‘ Amazon is so big now, they have the power to say take it or leave it. It feels like they used to care more. KEN HIGGINS An enthusiastic Amazon Prime member
YOUNG PEOPLE SHOULD BE ENCOURAGED TO THINK OUTSIDE THE BOX WITHOUT FEELING GUILTY
hai artist Aimi Kaiya felt discouraged after she saw artwork by other international artists at Chianciano Biennale 2022 in Italy. Aimi felt the works were creative and of excellent quality. Therefore, she did not expect to win any prize at the Chianciano Biennale Award. Surprisingly, Aimi was the only Thai artist at the biennale who won the Chianciano Biennale Award for abstract artwork for her mixed media painting Romance In Venice.
“I was honoured to win the Chianciano Biennale Award. It was unexpected as I did not think my work could compete with other artists. My abstract painting Romance In Venice is on display permanently at Chianciano Art Museum in Italy and because of this, Thai artwork can get more recognition internationally, especially since Chianciano Art Museum has been commended by The New York Times for its impressive collection,” said Aimi.
According to biennalechianciano. org, the Chianciano Biennale was launched in 2019 to provide a platform for artists without discrimination. Artists are judged exclusively on their work, talent and creativity.
Romance In Venice displays vivid colours from several types of paints such as oil, acrylic, acrylic spray and charcoal. Due to various kinds of paints, the painting features two layers with more dimensions. Aimi said she went through a lot of trial and error before understanding how to make different paints blend together.
“I had never been to Venice before, so I used Google Street View to roam the city online before painting Romance In Venice. I also used my imagination and visualised Venice as a city where people openly express their affection for one another. The painting includes abstract images of a river and people hanging out in the lively city. Its landscapes were created in my abstract style. I was surprised when I travelled to Venice, the vibe was like how I had visualised,” she said.
Aimi is a self-taught artist who earned a degree in clinical psychology from the Faculty of Education, Ramkhamhaeng University. Even though she has a strong interest in psychology, she felt uncomfortable working with patients because she prefers to work as a researcher. Before being a painter, Aimi worked as a product developer. During the Covid-19 lockdowns, Aimi felt frustrated she could not leave home and began to have insomnia. As a graduate in clinical psychology, she knew that art therapy can have a positive effect on mental health, so she began to paint.
“I drew a painting of my dog with a background of Vincent van Gogh’s The Starry Night and began to fall in love with art. I initially practised drawing and painting using images on the internet. I later discoveredthat I have a passion for abstract painting, especially abstract expressionism because it has no rules. There is no right or wrong. I can express my identity and true self through it,” she said.
As a self-taught artist, Aimi has to develop her artistic skills by painting every day.
“A side of being a self-taught artist is I do not have to compete with others and nobody judges my work. In today’s digital age, there are many resources to learn. I learned from media such as documentaries, art news and e-books. Working on art allows me to create something and feel proud of myself as well asbuild my self-esteem. Art is like food for the soul which helps me to realise the meaning of life,” the artist said.
After becoming a full-time artist, Aimi worked for five months to exhibit her debut solo exhibition “Freedom, Isn’t It Good?” at Palette Artspace. The exhibition questionsThailand’s education system and family issues that can affect children.
“I created the exhibition in order to share my childhood experiences. Since the Covid-19 pandemic caused difficulty for many people, I hope that my exhibition can inspireand heal viewers. Family and educational institutions are important roots for children’s development. Young people should be encouraged to thinkoutside the box without feeling guilty. However, family and educational institutions sometimes draw a line for children which causes them to give up their hopes and dreams. ‘Freedom, Isn’t It Good?’ received positive feedback from young viewers. They sent me messages via Instagram to thank me and shared their feelings with me,” said Aimi.
Despite well-received feedback on the debut exhibition, being an artist in Thailand is a struggle due to a lack of financial support.
“Art materials are expensive and spaces for exhibitions are limited. ‘Freedom, Isn’t It Good?’ did not receive financial support for further development in spite of the fact that children are building blocks for future world peace and harmony. If young people are able to express themselves positively, their actions can cause a positive impact on our society in the long run,” she said.
To challenge herself, Aimi decided to participate in the Chianciano Biennale 2022. Then, she travelled to Italy to experience the Chianciano Biennale and the Venice Biennale and visited many museums to view the works of legendary artists.
“Artists at biennales have their own unique style. I also visited many art museums in Italy, France and Spain such as the Joan Miro Foundation, Picasso Museum, Peggy Guggenheim Collection and the Orangery Museum. The experience broadened my horizons and helped me improve the quality of my work. After seeing naïve art by Joan Miro, a Spanish painter, sculptor and ceramicist, I was inspired to create a sculpture using elements from my paintings, but I still have to wait for financial support,” Aimi said.
Many people want to understand abstract art, but Aimi said one art piece can be interpreted in different ways.
“I believe abstract art is similar to the Rorschach test which psychologists use to assess a person’s personality, character and emotion. Each patient sees the ink blots in different ways. Viewing abstract art requires personal experience and perception, so there is no right or wrong interpretation. Each viewer can interpret and appreciate the aesthetics in their own individual way,” Aimi explained.
In the future, Aimi aims to be accepted internationally. She is now searching for an artist-in-residence programme abroad.
“My short-term goal is to have success internationally while my ultimate goal is to create art that relates to psychology research. I hope that it will benefit other people. Also, I plan to write a book that is a mix of fiction and fact about psychology to entertain readers. I am still in the process of gathering information,” said Aimi.