Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Overview
- Changes in Amazon shopping behavior
- What you want to know
- What we see
- Amazon’s role in the purchase process
- What you want to know
- What we see
- The impact of Prime
- What you want to know
- What we see
- Consumer affinity for Amazon
- What you want to know
- What we see
- The role of trust
- What you want to know
- What we see
- Amazon’s vulnerabilities
- What you want to know
- What we see
- What’s next?
Amazon Overview – What You Need to Know
-
- “My favorite place to shop”
- Unmatched pace of growth
- A cut above the rest in nearly all areas
- Prime is Amazon’s most powerful tool
- Environmental responsibility and customer service not its strongest assets
- Never resting on its laurels
Defining the Effect
-
- What is the “Amazon effect”?
- The effect on consumer behavior
-
- Figure 1: Amazon attitudes and perceptions, October 2018
- The effect on consumer expectations
-
- Figure 2: Shopping expectations and perceptions, October 2018
- The effect on competitors
- Where’s the tipping point?
Amazon Scale
-
- “Earth’s most consumer-centric company”
-
- Figure 3: Amazon.com US net sales, 2015-17
- Amazon = US ecommerce
- Where Amazon excels
- Overdelivers what online shoppers want
-
- Figure 4: Amazon rating – Select above average attributes, October 2018
- Drives loyalty through Amazon Prime
- Invests in understanding its customers
- Diversifies beyond retail
-
- Figure 5: Amazon.com global net sales by product type, 2017
Amazon Prime Membership
-
- 100 million subscribers and growing
- Participation rates
- Reasons for membership and benefits used
-
- Figure 6: Prime membership, October 2018
- High satisfaction keeps consumers loyal
-
- Figure 7: Prime membership satisfaction, October 2018
-
- Figure 8: Shopping attitudes, by Prime membership, October 2018
- Nonmembers don’t see value in exchange for fees
-
- Figure 9: Reasons for non-Prime membership, October 2018
Opportunity Areas for Competing with Amazon
-
- Consumers would like Amazon to be more environmentally friendly
-
- Figure 10: Amazon ratings – Select average/below average attributes, October 2018
- Environmental and other corporate social responsibility
- Quality
- Customer service
- Other considerations
-
- Figure 11: Frustrations when shopping on Amazon, by heavy Amazon shoppers, April 2018
-
- Figure 12: Reasons for shopping less on Amazon, October 2018
Key Initiatives
-
- Broad-based initiatives
- Physical store expansion
- Echos and “Alexa inside”
- Delivery improvements
- HQ2: A second US headquarters
- Category-specific initiatives
-
- Figure 13: Role of Amazon when shopping by category, October 2018
- Amazon’s effect on toys and games
-
- Figure 14: Amazon Toy Catalog, October 2018
- Amazon’s effect on electronics
- Amazon’s effect on beauty/personal care
- Amazon’s effect on grocery
- Amazon’s effect on apparel
The Amazon Shopper – What You Need to Know
-
- Flocking to Amazon
- High consumer favorability
- Attract, convert, repeat
- Trust is very high, but not implied
Amazon Shopper Profile
-
- Synonymous with online shopping
-
- Figure 15: Shopping frequency, online in general versus on Amazon, October 2018
- A lock on young affluents
-
- Figure 16: Amazon shopping frequency, by age and income, October 2018
- Much more shopping on Amazon
-
- Figure 17: Shopping level versus a year ago, by Amazon shopping frequency, October 2018
-
- Figure 18: Reasons for shopping more, October 2018
- Attrition is low
-
- Figure 19: Reasons for shopping less, October 2018
How Consumers Shop on Amazon
-
- The first stop
-
- Figure 20: Shopping behaviors, by Prime membership, October 2018
-
- Figure 21: Prime-specific shopping behaviors, October 2018
-
- Figure 22: Online shopping starting point for select categories, October 2018
- Amazon as personal shopping advisor
-
- Figure 23: Purchasing behaviors, by Amazon shopping frequency, October 2018
Consumer Perceptions
-
- Addicted to Amazon
-
- Figure 24: Perceptions, by Prime membership and Amazon shopping frequency, October 2018
- Consumers’ emotional relationship with Amazon is actually mostly functional in nature
-
- Figure 25: Correspondence analysis – Principal map – Attributes, October 2018
-
- Figure 26: Attributes, October 2018
- How much is too much?
-
- Figure 27: Perceptions regarding power, by age and income, October 2018
-
- Figure 28: Amazon “Can You Feel It?” holiday TV ad, November 2018
Trust in Amazon
-
- High levels of trust
-
- Figure 29: Trustworthiness, by Amazon shopping frequency and Prime membership, October 2018
- Third-party sellers not capturing halo effect
-
- Figure 30: Trust of Amazon compared to third-party sellers, by Amazon shopping frequency and Prime membership, October 2018
-
- Figure 31: Amazon storefront of the week featuring Lalabu, October 2018
- Trust should not be taken for granted
-
- Figure 32: Trusted services, October 2018
-
- Figure 33: Trusted services, by generation, October 2018
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Correspondence analysis methodology
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
-
-
- Figure 34: Amazon.com, net sales by country, 2015-17
- Figure 35: Amazon.com, Global net sales by product type, 2015-17
-
Back to top