For years, Amazon.com, Inc. (NASDAQ:AMZN) was seeing an increasing number of shoppers consulting its platform first for product searches.
It was a strong signal of Amazon’s market dominance, and pervasiveness of its Prime service. But as Business Insider notes, that trend seems to be reversing now, with search engines making a big comeback:
Amazon’s share of initial product searches dropped from 55% in 2016 to 49% in 2017, and search engines like Google appear to be responsible, according to a survey from Survata as cited by Bloomberg.
Search engines’ share went from 28% to 36% between 2016 and 2017, reversing the drop they saw between 2015, when they had 34%, and 2016.
The rise of mobile commerce (m-commerce) may be responsible for search engines’ turnaround.
That’s because search engines are by far the most popular first destination for mobile shoppers. When you consider the fact that 23% of all U.S. e-commerce sales are completed on mobile devices, it’s easy to see why Google is benefitting from the changing trend.
Could Amazon claw back some more market share next year? It’s possible, although gains may come via voice searches on Alexa, rather than on mobile phones or traditional desktop computers.
Amazon.com, Inc. shares rose $0.74 (+0.06%) in premarket trading Wednesday. Year-to-date, Amazon.com, Inc. (AMZN - Get Rating) has gained 56.93%, versus a 21.86% rise in the benchmark S&P 500 index during the same period.