Table of Contents
Executive Summary
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- Amazon: The business
- The ‘trillion’ dollar business
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- Figure 1: Amazon, total net sales, 2014-19
- The largest non-food retailer in the UK
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- Figure 2: Top 10 leading UK retailers as a % of all retail sales (ex-VAT, ex-fuel), 2018
- Amazon’s adspend reaches record highs in 2019
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- Figure 3: Total above-the-line, online display and direct mail advertising expenditure by Amazon, 2015-19
- Amazon’s brand image in a strong position
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- Figure 4: Key metrics for selected brands, November 2019
- Amazon continues to innovate, from smart rings to Premier League football
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- Figure 5: Amazon Echo Loop, September 2019
- Amazon: The consumer
- Nearly nine in 10 shop with Amazon
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- Figure 6: Frequency of Amazon shopping, October 2019
- Nearly half have access to Amazon Prime
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- Figure 7: Amazon Prime membership, October 2019
- Younger shoppers far more likely to shop via mobile
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- Figure 8: Devices used to shop with Amazon in the past year, by age, October 2019
- Hard-copy media still the most popular purchase
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- Figure 9: Products purchased via Amazon in the past year, October 2018 and 2019
- Delivery perks are key but Prime Video is increasingly important
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- Figure 10: Amazon Prime services regularly used, by access to Amazon Prime, October 2019
- Half of UK households have an Amazon device
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- Figure 11: Ownership of Amazon devices, October 2019
- Reviews crucial to purchasing on Amazon
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- Figure 12: Behaviours of Amazon shoppers, October 2019
- Marketplace is a differentiator but some question the quality
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- Figure 13: Attitudes towards Amazon Marketplace, October 2019
- What we think
Issues and Insights
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- Amazon: the ecosystem
- The facts
- The implications
- Nike ditches Amazon, a one-off or a significant trend?
- The facts
- The implications
- Amazon: setting the foundations for ‘frictionless retail’
- The facts
- The implications
Amazon: Structure and Innovations – What You Need to Know
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- The ‘trillion’ dollar business
- The largest non-food retailer in the UK
- Amazon’s adspend reaches record highs in 2019
- Amazon’s brand image in a strong position
- Amazon continues to innovate, from smart rings to Premier League football
Amazon: An Overview
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- The ‘trillion’ dollar business
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- Figure 14: Amazon, total net sales, 2014-19
- Consumer-facing operations still the majority of Amazon’s business
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- Figure 15: Amazon net sales breakdown, 2018
- AWS is becoming the driver of investment
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- Figure 16: Breakdown of Amazon net sales, as a percentage, by business segment, 2016-18
- Amazon turns the profit screw
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- Figure 17: Amazon profits, 2014-18
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- Figure 18: Amazon, net cash provided by (used in) operating activities), 2014-18
Amazon: In the UK Market
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- The UK accounts for just 6% of Amazon’s revenue
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- Figure 19: Geographic breakdown of Amazon revenues, 2016-18
- The dominant online market leader
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- Figure 20: Online retailing market shares, 2018
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- Figure 21: Amazon reported sales and gross transactional revenues as a % of all online retail sales, 2016-19
- Electricals still the key category for the business
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- Figure 22: Estimated Amazon UK sales, by product, 2018
- How big is Amazon in the context of the wider sector?
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- Figure 23: Top 10 leading UK retailers as a % of all retail sales (ex-VAT, ex-fuel), 2018
Amazon: Brand Research
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- Amazon: brand overview
- Brand map
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- Figure 24: Attitudes towards and usage of selected brands, November 2019
- Key brand metrics
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- Figure 25: Key metrics for selected brands, November 2019
- Brand attitudes: Amazon, logically, stands out as providing a great online service
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- Figure 26: Attitudes, by brand, November 2019
- Brand personality: Amazon has cultivated a ‘fun’ brand image
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- Figure 27: Brand personality – macro image, November 2019
- Reliability key to the appeal of the Amazon brand
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- Figure 28: Brand personality – micro image, November 2019
- Brand analysis
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- Figure 29: User profile of Amazon, November 2019
Amazon: Launch Activity and Innovation
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- Refreshing the Amazon device line-up
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- Figure 30: Amazon Smart Oven, September 2019
- Figure 31: Amazon Echo Loop, September 2019
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- Figure 32: Amazon Echo Auto, September 2019
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- Figure 33: Amazon Kids edition, October 2019
- It’s not all about consumer electronics…
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- Figure 34: Amazon Belei, November 2019
- Expanding the streaming line up
- Refining delivery, collection and payment
- Prove it (sustainable)
- Celebrating its two biggest days
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- Figure 35: Amazon Home of Black Friday 2019 pop-up, November 2019
Amazon: Advertising and Marketing Activity
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- Amazon’s adspend hits record highs in 2019
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- Figure 36: Total above-the-line, online display and direct mail advertising expenditure by Amazon, 2015-19
- Growth in spending on Prime and services
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- Figure 37: Total above-the-line, online display and direct mail advertising expenditure by Amazon, by advertising category, 2015-19
- The majority is spent on TV
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- Figure 38: Total above-the-line, online display and direct mail advertising expenditure by Amazon, by media type, 2015-19
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Nearly nine in 10 shop with Amazon
- Nearly half have access to Amazon Prime
- Younger shoppers far more likely to shop via mobile
- Hard-copy media still the most popular purchase
- Delivery perks are key but Prime Video is increasingly important
- Half of UK households have an Amazon device
- Reviews crucial to purchasing on Amazon
- Marketplace is a differentiator but some question the quality
Who Shops and How Frequently with Amazon?
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- Almost nine in 10 shop with Amazon
- Half of Amazon shoppers use the retailer once a month or less
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- Figure 39: Frequency of Amazon shopping, October 2019
- 25-34s most frequent Amazon shoppers
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- Figure 40: Frequency of Amazon shopping, by age, October 2019
- More have increased their level of Amazon use than decreased it
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- Figure 41: Changes in Amazon use in the past year, October 2019
Amazon Prime Membership
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- Nearly half have access to Amazon Prime
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- Figure 42: Amazon Prime membership, October 2019
- Younger consumers more likely to have access to Prime
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- Figure 43: Amazon Prime membership, by age, October 2019
- A quarter have joined Prime in the past year
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- Figure 44: Length of Amazon prime membership, October 2019
Devices Used to Shop with Amazon
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- Most shop via laptop/desktop
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- Figure 45: Devices used to shop with Amazon in the past year, October 2019
- Younger shoppers far more likely to shop via mobile
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- Figure 46: Devices used to shop with Amazon in the past year, by age, October 2019
- Younger shoppers more likely to shop via multiple devices
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- Figure 47: Repertoire of devices used to shop with Amazon in the past year, by age, October 2019
What They Buy via Amazon
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- Hard-copy media still the most popular purchase via Amazon
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- Figure 48: Products purchased via Amazon in the past year, October 2018 and 2019
- Prime members more likely to buy across all categories…
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- Figure 49: Purchases made via Amazon in the past year, by Prime membership status, October 2019
- …and have a wider repertoire of purchasing
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- Figure 50: Repertoire of categories shopped via Amazon in the past year, by Prime membership status, October 2019
Amazon Services Used
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- Delivery still key but Prime Video is growing in importance
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- Figure 51: Amazon Prime services regularly used, by access to Amazon Prime, October 2019
- So big it has its own day
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- Figure 52: Purchasing during Amazon Prime Day 2019, October 2019
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- Figure 53: Attitudes towards Amazon sales events, October 2019
- Will more live sport encourage more Prime Video sign-ups?
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- Figure 54: Attitudes towards sport on Prime Video, by gender and age, October 2019
- Most use multiple services
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- Figure 55: Repertoire of Prime services used, by Prime services regularly used, October 2019
Ownership of Amazon Devices
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- Half of UK households have an Amazon device
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- Figure 56: Ownership of Amazon devices, October 2019
- Prime members significantly more likely to own Amazon devices
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- Figure 57: Ownership of Amazon devices, by membership of Amazon Prime, October 2019
- The majority purchased their products via Amazon
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- Figure 58: Where Amazon products were purchased, October 2019
Behaviours of Amazon Shoppers
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- For most Amazon is the first port of call online
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- Figure 59: Behaviours of Amazon shoppers, October 2019
- Amazon’s influence is not limited to online
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- Figure 60: Behaviours of Amazon shoppers, by age, October 2019
Attitudes towards Marketplace
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- Over a third think Marketplace is what makes Amazon unique
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- Figure 61: Attitudes towards Amazon Marketplace, October 2019
- One in five Amazon shoppers believe they have received counterfeit products
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- Figure 62: Attitudes towards shopping with Amazon, by age, October 2019
- Half of 16-34s say it is hard to trust the quality of Marketplace products
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- Figure 63: Agreement with attitudes towards Amazon Marketplace, by age, October 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- VAT
- Financial definitions
- Abbreviations
- Consumer research methodology
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