Wireless Carriers Losing Device Sales to Amazon as Website and In-Store Purchase Experiences Waver, J.D. Power Finds

Wireless carriers are confronting increased competition for device sales from third-party ecommerce sites, according to the J.D. Power 2019 U.S. Wireless Purchase Experience Full-Service Performance Study Volume 2 and the J.D. Power 2019 U.S. Wireless Purchase Experience Non-Contract Performance Study Volume 2.

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Specifically, the percentage of device purchases made via carriers’ websites and overall level of customer satisfaction with those purchases has declined since the Volume 1 study, released in January 2019. Meanwhile, the total percentage of wireless purchases made via Amazon.com has increased by 3 percentage points during the same period, and customers who purchase via amazon.com are much more satisfied with their purchase experience than with their carrier website (884 vs. 851, on a 1,000-point scale).

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“Wireless carriers have made meaningful investments in their digital channels, and while those investments are positively influencing customer care, there is still room for improvement when it comes to optimizing purchase experience,” said Ian Greenblatt, Managing Director at J.D. Power. “Carriers need to be positioned to satisfy their customers’ shopping preferences as the industry gets closer to 5G and the introduction of new phone models.”

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