Online retail giant amazon.com is playing an increasingly important role in the traffic ecosystem in the sportswear industry. Amazon is a top-8 downstream site (the destination the user clicks to after visiting the brand site) for three-quarters of the brands in the Digital IQ Index: Sportswear. It averages 5 percent of all downstream traffic. This finding supports the notion that customers are comparing prices on Amazon after selecting an item they like on the brand site. Zappos and eBay are also both averaging 1 percent of all downstream traffic.
Sportswear brands are attempting to combat the Amazon threat through offers, and 71 percent of brands provide free shipping. This offer is an attempt to compete with the compelling value proposition of Amazon Prime. Of these brands, 70 percent require an order minimum. The average minimum to qualify for free shipping is $86. Offering free shipping is consistent with e-commerce best practices, as 55 percent of customers have abandoned a purchase after realizing the shipping charges were higher than expected.
To learn more about the Digital IQ Index: Sportswear, download an excerpt of the report here.
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