Netflix, QVC, Amazon best at satisfying online shoppers

Netflix, QVC.com and Amazon did the best job satisfying online shoppers among the 100 highest-grossing retail sites on the Web this year, but the biggest retailers aren’t always the best at satisfying customers, a survey released on Friday found.

Doctors Foster and Smith, an online seller of medications and supplies for pets, got the fifth-highest score in the latest survey despite ranking outside the Top 20 in terms of revenue, says Larry Freed, president and CEO of ForeSee Results, which rates consumer satisfaction in the Web retail space twice a year using data from the American Customer Satisfaction Index at the University of Michigan. The results are based on more than 20,000 surveys of consumers.

“The best-performing sites in terms of satisfaction are not necessarily the biggest retailers,” Freed says. “But on a go-forward basis [retailers who satisfy customers] are the ones that are going to see the best success.”

The Top 10 highest scores in today’s survey, in order, are: Netflix, QVC, Amazon, Barnes & Noble, Doctors Foster and Smith, AmericanGirl, Market Day, L.L. Bean, HSN (the home shopping network), and TigerDirect.com.

Netflix scored an 85 out of a 100-point scale. The lowest-scoring retailer was PCMall at 67.

Best Buy, with a score of 71, is struggling to please online shoppers, which Freed says is partly due to the competitive nature of the electronics industry. Computers, televisions and similar products come in many different models, and the complexity of the product mix and categories creates a great challenge for retailers reflected in generally low scores. Circuit City, for example, scored a 74. The clothing industry offers a similar challenge, as retailers have to describe the various sizes and colors of apparel.

Overall, sellers of books, CDs and DVDs earned the highest customer satisfaction marks. A Red Hot Chili Peppers CD is the same no matter where a consumer buys it, making it easier to deliver a predictable product, Freed notes.

But there is still plenty Web retailers can do to differentiate themselves. The ability to find products, ease of navigation and brand development are the keys, Freed says. The Top 5 in today’s surveys each have a different business model, he notes. While Barnes & Noble is a book, CD and DVD seller with many physical stores, Amazon sells only online. Netflix delivers a subscription-based service, while QVC sells products on television and the Web, but not in brick-and-mortar stores. Doctors Foster and Smith is essentially a catalog company.

“If you look at the top five in scores, they really all come from a different business model,” Freed says. “The message there is it’s all about execution.”

The price of products actually does not have a significant impact on a typical online consumer’s satisfaction, Freed says. Retailers can improve the bottom line more by investing in Web site upgrades and brand value than by dropping product prices, according to ForeSee Results.

Amazon, for example, does a great job categorizing an enormous number of products and offers excellent search capabilities, Freed says. These traits have allowed the company to satisfy customers despite the complexity involved in selling just about any type of product on the market.