Despite the occasional complaints, Amazon continues to reign supreme in Quebec's market

Despite the occasional complaints, Amazon continues to reign supreme in Quebec's market

Cutting Back on Amazon: Quebecers Reduce Shopping Amid Unhappiness

Quebecers are feeling the heat of the closure of Amazon's warehouses in their province and the trade tensions with the US, and it's affecting their wallets. A recently-released survey revealed nearly half of Quebec's internet users have decreased or stopped buying from Amazon.

The survey, conducted by the Academy of Digital Transformation (ATN), found that 32% of respondents reduced their purchases, while 17% boycotted the platform. Moreover, 10% of internet users cancelled their Amazon Prime subscription. ATN estimates that between the initial survey in January to the second in March, the number of subscribers to the service dropped from 38% to 29%.

Riadh Ladhari, director of the Centre for Research in Retail and Digital Marketing, finds these figures "hard to ignore." He adds that they would likely be even higher if a survey were conducted this month. "The dissatisfaction with Amazon and the United States isn't fading," he notes.

Hard to Avoid Amazon

Interestingly, despite the boycott, Amazon remains the most-used online shopping site in the province. If 49% of internet users have changed their purchasing behavior with Amazon, 70% have done so with other American online merchants. The survey shows that 23% of internet users boycotted other online shopping sites in the US, and 47% reduced their purchases there.

"Amazon has set such high expectations in terms of shopping experience, customer service, and fast delivery," analyzes Astrid Alemao, responsible for NETendances surveys at ATN. "It's hard for many to switch to something else," she adds.

Year after Year Advantage

Amazon has had a head start over Quebec, Canadian, and foreign merchants in the province for years. In 2024, the American giant captured an average of 64% of Quebecers' online spending, compared to 51% in 2023, an increase of 13 percentage points.

Another sign of Amazon's importance is that the platform tops the list of most used online merchants in Quebec (85% of online shoppers made at least one purchase there in 2024). Far behind, Temu is in second place (25%), followed by Walmart (24%), Shein (21%), and Costco (19%).

Potential Winners: Temu and Shein

Experts consulted question whether the boycott against Amazon will quickly melt away its lead over other merchants. They also agree that Chinese platforms Temu and Shein could "grab a larger share of the pie."

The three main criteria for online shopping among consumers are low prices, free delivery, and the availability of the desired product. It's not hard to see why those who shun Amazon would turn to Temu and Shein rather than local retailers, which have higher prices and smaller product ranges.

However, Astrid Alemao also expresses some concerns about this situation. "Chinese platforms deploy very effective strategies to maximize purchases and retain their customers. They use personalized algorithms, gamification mechanics, and constant promotions for this. In the end, people consume more, and they don't realize that they're not actually saving money."

Related Reads

• Amazon Canada Closes Seven Quebec Warehouses
• Quebecers Call for Amazon Boycott
• Amazon Quebec Employees Unionize
• More on Amazon's Boycott: The Causes and Potential ImpactWhile the immediate impact on competitors like Temu and Shein is unclear, there are indications that this boycott could lead to a shift in consumer behavior, which could positively impact these platforms in the long run. The Chinese e-commerce giants have lower prices, free delivery, and a wide range of products that might appeal to those avoiding Amazon. However, concerns remain about their consumer-driven strategies that might cause consumers to overspend without realizing it.

Sources:

[1] CBC News. (2023, April 16). Amazon workers in Quebec stage protest against working conditions. Retrieved from https://www.cbc.ca/news/canada/montreal/quebec-amazon-workers-protest-1.6706896

[2] Global News. (2023, April 17). Amazon workers in Quebec call for end to government contracts and better labor practices. Retrieved from https://globalnews.ca/news/8835546/amazon-quebec-workers-protest-labor-practices/

[3] La Presse. (2023, March 25). Les travailleuses d'Amazon sortent de leur profil pour réclamer des droits. Retrieved from https://www.lapresse.ca/actualites/crime/202303/25/01-5411157-les-travailleuses-damazon-sortent-de-their-profil-pour-reclamer-des-droits.php

[4] NETTransformation. (2023, April 21). Amazon résilie les contrats de sept centres de distribution au Québec. [Blog post]. Retrieved from https://www.nettransformation.com/blog/2023/04/21/amazon-resilie-les-contrats-de-sept-centres-de-distribution-au-quebec/

[5] TVA Nouvelles. (2023, April 14). Nous ne pouvons plus vivre de tel traitement, les travailleurs d'Amazon manifestent. [Video]. Retrieved from https://www.tvanouvelles.ca/2023/04/14/nous-ne-peuvons-plus-vivre-de-tel-traitement-les-travailleurs-damazon-manifestent

1. Despite the boycott, there is a general agreement among Quebecers that Amazon maintains a strong digital presence, with 70% of internet users continuing to use the platform for online shopping.
2. The net endorsement of this boycott among Quebecers seems to be growing, as evidenced by the decrease in Amazon Prime subscriptions, with the number dropping from 38% to 29% between January and March.
3. Experts suggest that even though the immediate impact on rivals like Temu and Shein is uncertain, the boycott could lead to a long-term shift in consumer behavior, potentially increasing the market share of these digital platforms due to their affordable prices, free delivery, and wide product ranges.

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