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In this situation, Prime members are 52% more likely to immediately take out their phones and buy the item on Amazon, or elsewhere online. When finding out a product is out of stock, Prime members will buy it online instead 29% of the time, whereas non-Prime members will only do so 17% of the time. And, Buzek says, once the consumer makes their first order of any particular item online, they are far more likely to continue buying it online, and may not return to the store. IHL calculated that “upwards of 24% of Amazon’s current retail revenue comes from customers who first tried to buy the product in store.” In other words, IHL estimates that between $20 and $24 billion of Amazon’s North American sales in 2017 (totaling roughly $106 billion), are because a brick-and-mortar retailer did not have a product that a customer went to their store to buy. The solution, according to Buzek, is for retailers to better understand what customers experience when something’s out of stock. Products tend to be out of stock in stores between one-quarter and one-third of the time, the research indicates, which drives purchases online, given the availability of products on Amazon, and its convenience. Technology can help retailers better manage their inventory. It’s not unusual for retailers to only carry out a physical stock-check twice a year. Over the course of six months, the difference between what the retailer thinks they have in store versus what they actually have in store can vary by as much as 25%. And the solution can be relatively simple, Buzek says.
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