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Amazon Strategic Review, 2018

Amazon Strategic Review, 2018

Summary

Amazon Strategic Review, 2018, offers comprehensive insight into the retailer, including in-depth analysis of: the hot issues driving its growth (its market-leading, tech-focused products which will drive loyalty, the continual development of its Amazon Prime proposition, the creation of original content which threatens Netflix’s hold on the streaming market, Amazon’s rapid expansion into food & grocery which is set to disrupt the sector, its prioritisation of market share growth in clothing and as Amazon’s marketing ramps up, how retailers must focus on ‘What Amazon Can’t Do’), its financial performance, its operating performance (overall and by sector) out to 2023e and consumer shopping habits.

Amazon’s tech-focused, entrepreneurial mentality enables it to constantly innovate in terms of both its product offer and the shopping experience, driving accelerated growth. Although UK growth levels did not quite match up to Amazon’s worldwide performance in 2017, Amazon still far outperformed the UK online retail market, demonstrating that its success is clearly not only due to spend shifting online and that it is stealing share from its UK competitors. Amazon Prime has also enabled the retailer to become a service provider and thanks to attractive Prime offer, its subscriptions revenue has rocketed. While Amazon appeals to a broad shopper base, Amazon Prime appeals to a younger demographic, particularly those aged 15-34, with the benefit of having free and fast delivery appealing to those shopping frequently at Amazon.

Scope

  • Despite being a mature player in the online market, Amazon continues to grow at a rapid rate and Amazon’s share of the UK online market (considering retail revenue only) is set to soar to 17.4% by 2023.
  • While Amazon is a threat for many companies, it is also a facilitator of growth which provides retailers with an alternative channel to sell through. Amazon’s third-party sellers’ revenue has increased significantly to account for an estimated 17.9% of its UK revenue in 2017.
  • The key sectors driving Amazon’s growth are primarily electricals and food & grocery with added investment in the clothing & footwear and health & beauty sectors also boosting growth for the retailer.
  • More than four in five online shoppers have purchased from Amazon in the past 12 months, with the highest penetration among books, music & video and electricals - the sectors in which Amazon is a mature player.
Reasons to buy
  • Recognise what Amazon is prioritising in terms of its development to know how to compete with the online pureplay and what areas your company should be focusing on.
  • Utilise our detailed forecasts for Amazon including sector forecasts to 2023e to comprehend what level of threat Amazon poses to your business and identify how the retailer will impact your sector over the next five years.
  • Understand which shoppers Amazon is appealing to and how it does this through our in-depth consumer data, covering the profile of the Amazon shopper, the profile of an Amazon Prime subscriber, penetration by sector as well as shopping habits and motivations of Amazon shoppers.


  • Outlook & strategic issues
  • Financial performance
    • What is included
    • Headlines
    • Amazon worldwide group revenue
    • Amazon UK revenue
    • Amazon revenue streams
    • Worldwide group retail revenue
    • Worldwide group third-party sellers revenue
    • Worldwide group subscriptions revenue
    • Worldwide group other revenue
    • UK retail revenue
    • UK third-party sellers revenue
    • UK subscriptions revenue
    • UK other revenue
    • UK growth comparison
    • Worldwide group operating profit
  • Operating performance
    • Amazon's UK retail revenue
    • Amazon's total market share
    • Amazon UK retail revenue by sector
      • Table Amazon UK retail revenue by sector
    • Where Amazon shoppers also purchased from
    • Which sectors Amazon shoppers purchased from
  • Operating performance: Electricals
  • Electricals
  • Operating performance: Books
    • Books
  • Operating performance: Clothing & footwear
    • Clothing & footwear
  • Operating performance: Video & computer games
    • Video & computer games
  • Operating performance: Toys & games
    • Toys & games
  • Operating performance: Food & grocery
    • Food & grocery
  • Operating performance: Music & video
    • Music & video
  • Operating performance: Homewares
    • Homewares
  • Operating performance: Health & beauty
    • Health & beauty
  • Operating performance: DIY & gardening
    • DIY & gardening
  • Operating performance: Sports equipment
    • Sports equipment
  • Operating performance: Furniture & floorcoverings
    • Furniture & floorcoverings
  • Consumer shopping habits
    • Headlines
  • Who shops
    • Amazon shopper penetration
    • Amazon shopper profile
    • Sector penetration of an Amazon shopper
  • Shopping habits
    • Time spent researching before purchasing
    • Store visited before purchasing
    • Amazon's usage by sector
      • Table Sectors browsed and purchased at Amazon
    • Amazon's shopper conversion by sector
    • Shopping habits by device
    • Fulfilment methods used
    • Amazon ratings
  • Amazon Prime
    • Amazon Prime shopper penetration
    • Amazon Prime shopper profile
    • Who pays for the Amazon Prime subscription
    • How consumers pay for an Amazon Prime subscription
    • Why consumers subscribe to Amazon Prime
    • Which services Amazon Prime customers use
    • Amazon Prime shoppers that purchased on Prime Day
    • Amazon Prime impact on shopping habits
    • Amazon shoppers that previously subscribed to Prime
    • Reasons for not renewing Prime subscription
    • Purchase frequency
    • Spending habits at Amazon
      • Table Changes in spending habits at Amazon
  • Amazon's key products
    • Ownership of Amazon's key products
      • Table Amazon shoppers that own Amazon's key products
    • Usage of Amazon's key products
  • Views on Amazon clothing & footwear
    • Reasons for not purchasing clothing & footwear from Amazon
  • Methodology

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