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BizReport : Ecommerce archives : July 25, 2013

Showrooming: Amazon winning the war in-store

More than half of smartphone owners regularly check prices on their device while in a physical store, according to a new study from Parago, with Amazon the number one price comparison destination.

by Helen Leggatt

Echoing the findings of a recent Harris Interactive study, Texas-based Parago found that Amazon is where shoppers armed with smartphones head online to check if they can find an item at a better price.

Parago surveyed 1,043 smartphone owners in the United States in June 2013 for the report and found that 92% chose to visit Amazon to compare prices versus 84% who turned to Google. Just under half of those using Amazon were Prime members and so received additional incentives to shop online, such as free shipping.

Just a small price difference of $5 will motivate shoppers to buy online rather than in-store, found the Parago's 'Dynamic Pricing in a Smartphone World' report.

"Shopping behavior has fundamentally changed," said Rodney Mason, CMO of incentives and engagement firm Parago. "The combination of growing smartphone use, consumers' determination to find the lowest price and the ability to make purchases on smartphones while in-store is resulting in brick and mortar retailers losing buyers to savvy e-tailers like Amazon in unprecedented numbers."

Harris Interactive's study, released in June this year, also found Amazon to be the go-to online destination for in-store price checkers (57%). That figure rose among shoppers in Best Buy, Walmart and Target of which 66%, 69% and 72% respectively went on to make purchases with Amazon.

Tags: consumer survey, in-store, mobile use trends, online shopping, shopping trends, showrooming

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