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Amazon Strategies and the Amazon Shopper, 2nd Edition

Amazon Strategies and the Amazon Shopper, 2nd Edition

This report has four sections: the Amazon Landscape, Amazon Category Analysis: Financial Services, Amazon Category Analysis: Food Products, and Amazon Category Analysis: Pet Products.

Even while Amazon’s sales have surpassed $200 billion, its heady growth continues. Packaged Facts estimates Amazon’s U.S. gross merchandise sales will comprise 43% of U.S. e-commerce sales in 2019, up from 28% in 2015, propelled by a combination of increasing retail category depth and breadth; increasing depth and breadth of its Amazon Prime loyalty program; significant technological innovation; and a major foray into omni-channel retailing. And yet the tide may be changing, as more and more retailers adapt to omni-channel realities.

For participants in markets affected by its growth, understanding Amazon’s value proposition and its evolving relationship with the consumer across retail categories and channels is of paramount importance.


  • Executive Summary
    • Report Scope
    • Report Summary
      • The Amazon Landscape
      • Amazon: Financial Services
      • Amazon: Food Products
      • Amazon: Pet Products
  • The Amazon Landscape
    • Amazon Sales Trends
      • Past the $200 Billion Mark yet 20%+ Growth Continues
      • Sales: Much More Than Selling Products
        • Table Amazon Net Sales: Products and Services, 2014-2018 (billion dollars)
        • Table Amazon Net Sales: North America, International, and AWS Segments, 2014-2018 (billion dollars)
      • U.S. Net Sales Trends
        • Table Amazon U.S. Net Sales by Category, 2014-2018 (billion dollars)
      • U.S. Gross Merchandise Sales Trends
        • Table Amazon U.S. Gross Merchandise Sales, 2014-2018 (billion dollars)
      • Will Amazon Have the Most Sales in 2022
        • Table Walmart and Amazon U.S. Sales, 2017-2022 (billion dollars)
      • Amazon E-Commerce Sales Versus the Competition
        • Table U.S. Retail and E-Commerce Sales: Walmart, Amazon, Costco, and Target, 2014-2018 (billion dollars)
    • Amazon Products and Services
      • Amazon Products and Services Use Footprint
      • Digital Media: Amazon vs. the World
        • Table Media Use by Type, 2015-2019 (percent)
        • Table Digital Music Service Used by Brand, 2015-2019 (percent)
        • Table Streaming Media Device Used by Brand/Type, 2015-2019 (percent)
        • Table Digital Devices Used to Read Books/E-Books, 2015-2019 (percent)
    • Going Toe-to-Toe with Amazon
      • Factors Important to Shopping for Products Online
        • Table Factors Important to Shopping for Products Online, Ranked by Importance, 2019
    • Fighting Back with Services
      • Walmart Flexes In-Store Muscle
        • Table Walmart In-Store Services Used, 2018 (percent)
      • In-Store Services Use: Influence on Other Purchases
        • Table Walmart In-Store Purchasers by Retail Category: All Adults vs. Walmart In-Store Services Users, 2018 (percent)
      • Walmart Personal Shopper Service: Jetblack
      • Not Just Walmart: Best Buy Services Help Weather E-Commerce Storm
    • To Partner or Not to Partner?
      • The Kohl's Success Story
        • Table Kohl's Net Sales, 2014-2018 (billion dollars)
    • Fighting Back: Best Buy
      • Home Delivery: Reading the Tea Leaves Pays Off
      • Physical Stores: a Click-and-Collect Renaissance
      • Leveraging the In-Store Experience: Customer Service
      • Leveraging the In-Store Experience: Omni-Channel Courtship
      • Leveraging the Digital Channel: In-Store Incentive
      • Bottom Line: Stable Growth After Years of Decline
        • Table Best Buy U.S. Revenue, 2014-2018 (billion dollars)
    • Fighting Back: Home Depot
      • Omni-Channel Success
      • Digital Customer Service Enhancements Make a Difference
      • The Need for Delivery Speed
      • Bottom Line: Strong Sales Continue
        • Table The Home Depot U.S. Net Sales, 2014-2018 (billion dollars)
    • Trends Shaping the Amazon Landscape
      • E-Commerce Continues to Grow Retail Sales Share
        • Table Retail Sales and E-Commerce Sales: Retail Sales vs. Retail Sales Excluding Auto and Gas, 2010-2019 (billion dollars)
      • Internet-Only E-Commerce Outpacing Omni-Channel E-Commerce Sales Growth
        • Table E-Commerce Sales: In-Store, Direct, Internet-Only, and Omni-Channel, 2015-2022 (billion dollars)
        • Table E-Commerce Sales Share: In-Store, Direct, Internet-Only, and Omni-Channel Sales, 2015-2022
      • Will Amazon Account for Half of E-Commerce Sales in 2022?
        • Table U.S. E-Commerce and Amazon U.S. Gross Merchandise Sales, 2015-2022 (billion dollars)
    • Delivery and Pick Up Trends
      • Home Delivery Still the General Rule
        • Table Home Deliveries, 2018 vs. 2019 (percent)
      • Amazon's Bread and Butter
      • But Amazon Can't Deliver Everything
    • Click-and-Collect Is Entering the Mainstream
      • Table Share of Online Purchasers Who Click and Collect, 2018 vs. 2019 (percent)
      • Leading Click-and-Collect Retailers
        • Table Click-and-Collect: Store Used for Last Pick Up, 2018 vs. 2019 (percent)
      • Click-and-Collect Incentivizes In-Store Purchasing
        • Table Click-and-Collect: Influence on In-Store Purchasing Behavior at Pick Up, 2018 vs. 2019 (percent)
      • How to Incentivize Click-and-Collect?
    • Subscription Services
      • Table Subscription Service Users, 2018 vs. 2019 (percent)
      • Amazon Way Out Front
        • Table Subscription Service Retailer Used Most, 2019 (percent)
        • Table Amazon Subscribe & Save Use by Product Category, 2016-2017 vs. 2019 (percent)
    • The App Experience
      • Retailer-Specific Mobile Apps Are an Important Means of Consumer Engagement
        • Table Retailer-Specific Mobile App Use and Use in Last 30 Days, 2019 (percent)
        • Table Retailer-Specific Mobile App Use and Use in Last 30 Days: By Gender and Age Bracket, 2019 (percent)
      • Retailer-Specific Mobile App Use Methods
        • Table Retailer-Specific Mobile App Use Methods: Used vs. Not Used and Potential for Use Again, 2019 (percent)
        • Table Retailer-Specific Mobile App Use Action: By Gender and Age Bracket, 2019 (percent)
      • The Amazon App Experience
    • All Things Alexa
      • "Okay, Google"; "Hey, Siri"; . . . or Just "Alexa"?
      • Apple Left in the Dust?
        • Table Amazon Alexa/Alexa App Use: Used: Prime vs. Non-Prime Users, 2019 (percent)
      • Beyond the Speaker
      • Amazon Alexa Skills
        • Table Amazon Alexa Skills Used: Prime vs. Non-Prime Users, 2019 (percent)
      • Eye-Popping Opportunity
      • Why Not Use Alexa?
        • Table Reasons for Not Using Alexa, Amazon Prime vs. Non-Prime Users, 2019 (percent)
      • Alexa-Only Deals
    • The Amazon Prime User
      • Own Prime, Own the World?
      • Prime Benefits
        • Table Timeline of Key Amazon U.S. Products and Services, 2005-2019
      • A Value Wallop
      • Surpassing 100 Million Members
      • The Power of Prime: Engagement
        • Table Amazon Prime Services Used and Considered Most Important, 2019 (percent)
        • Table Amazon Prime Members: Products Used, 2019 (percent)
        • Table Amazon Products and Services Used: Prime vs. Non-Prime Users, 2019 (percent)
  • Financial Services
    • Up Next: Branch Banking?
      • Table Reasons for Choosing Primary Bank by Age Bracket, 2019 (index)
      • Table Reasons for Choosing Primary Bank by HH Income Bracket, 2019 (index)
    • Up Next: Installment Payments?
      • Table In-Store and Online Retailer Purchase Methods: Cash-, Credit Card-, and Financing-Based: Online Purchasers, Amazon Purchasers, and Amazon Prime Members, 2019 (percent)
      • Table PayPal Credit Purchase Value and Loan Receivables, 2015-2018 (billion dollars)
    • Here Now: Voice Commerce
      • Table Amazon Alexa/Alexa App Use: Share of Amazon Purchases vs. Prime vs. Non-Prime Users, 2019
      • Ramifications and Opportunities
        • Table Amazon Alexa Skills Used by Amazon Prime Members, 2019 (percent)
    • Payment Options to Broaden the Target Audience
      • Here Now: EBT and Amazon Prime for Lower-Income Consumers
      • Here Now: The Amazon Credit Builder Card
      • Up Next: Co-Branded Debit, Anyone?
        • Table Credit Card and Debit Card Monthly Purchase Frequency by Major Retailer, 2019 (percent and index)
    • B-2-B moves
      • Extended Terms
      • Amazon Business Prime American Express Card
      • Line-Item Detail on Commercial Cards
      • Data Analytics
    • Basket-Shaping Payment and Pricing Incentives
      • How It Works
      • Consumer Interest
        • Table Influence of Smart Cart Pricing Options on Consumer Purchase Decision by Pricing Option, 2019 (percent)
    • Amazon and Payments
      • Amazon-Branded Consumer Credit Cards
        • Table Amazon Private Label and Co-Branded Credit Card Use Penetration: All Adults vs. Amazon Prime Members, 2019 (percent and millions of people)
      • The Nuts and Bolts: Amazon Visa Credit Cards
      • The Nuts and Bolts: Amazon Private Label Credit Cards
      • The first general-purpose private label credit card?
      • Cardholder Loyalty in Action: Let Me Count the Ways
      • Cardholder Loyalty in Action: Purchase Frequency and Purchase Value
        • Table Mean Amazon Prime Member Amazon Purchase Frequency and Amount: By Amazon-Branded Credit Card Status, 2019
      • Cardholder Loyalty in Action: Influence on Payment Methods Used on Amazon
      • Purchase Value Trends
        • Table Share of Prime Cardholders and Mean Monthly Purchase Value: By Monthly Amazon Prime Credit Card Spending Bracket, 2019
        • Table Amazon In-Store and Out-of-Store Consumer Credit Card Purchase Value by Card Type, 2018 (billion dollars and percent)
    • Points: Powerful Amazon Currency
      • Shop with Points
      • A Win-Win
    • Gift Cards: A Strong Supplemental Payment Choice
      • Table Payment Methods Used and Used Most at Amazon by Amazon Prime Members: Amazon Credit Card Holders vs. Non-Holders, 2019
      • An Assist: Amazon Prime Reload
    • Amazon Cash
    • Digital Wallet Moves
      • Amazon Pay
    • Online Payment Method Preferences
      • Credit Cards Online Payment Method of Choice
      • PayPal Digital Wallet Power
        • Table Online Payment Methods Used by Online Shoppers, 2019
      • Differences in Online Payment Methods Used by Major Retailer
        • Table Online Payment Methods Used by Online Shoppers: By Major Retailer, 2019
  • Food Products
    • E-Commerce Context
    • Amazon Grocery
    • Whole Foods Market
      • Amazon and Whole Foods: An Ideal Omni-Channel Grocery Partnership
        • Table Amazon, Whole Foods and Online Grocery Shoppers: Usage Indexes, by Demographic, 2019
      • Pricing: A Thorny Issue
      • Omni-Channel Purchasing and Delivery: Primed for Prime Now
        • Table Online Home Delivery, Online Grocery Delivery, and Online Purchasing: Whole Foods Users vs. All Adults, 2017-2019
    • Amazon Go, Go, Go
    • Online Grocery Usage Trends
      • Online Food/Grocery Ordering Usage Trends
        • Table Online Food/Grocery Ordering in Last 3 Months, 2014-2019
      • Online Grocery Delivery Usage Trends
        • Table Online Grocery Delivery Service Usage, by Provider, 2017-2019
    • Click-and-Collect and the Amazon Grocery Shopper
      • Table Click-and-Collectors, 2018 vs. 2019
      • Leading Click-and-Collect Retailers
        • Table Click and Pick Up: Store Used for Last Pick Up, 2018 vs. 2019
      • Amazon Prime Now
        • Table Amazon Prime Now: User Satisfaction Ranking, 2019
        • Table Amazon Prime Now: Products Delivered and Delivered Most, by Product Category, 2019
      • The Amazon Prime Now App Experience
    • Subscribe & Save and the Amazon Grocery Shopper
      • Subscribe & Save usage penetration and assortment trends
        • Table Amazon Subscribe & Save Usage, By Product Category, 2016-2017 vs. 2019
    • Prime Pantry and the Amazon Grocery Shopper
    • AmazonFresh and the Amazon Grocery Shopper
      • Diminished Focus
      • AmazonFresh Pickup still a pilot
    • Meal Kits and the Amazon Grocery Shopper
      • Why meals kits make sense for Amazon
        • Table Online Food/Grocery Ordering and Online Meal Kit Delivery Service Usage: Amazon Users vs. Non-Amazon Users, 2019
        • Table Online Food/Grocery Ordering and Online Meal Kit Delivery Service Usage: Cross-Usage, 2019
      • Product Assortment Trends
    • Key Competitors: Grocery Strategies
      • In Detail: Walmart
      • Well-Positioned
      • The Need to Grow SKUs
      • Shrinking the Superstore to Provide Convenience
      • The Last Mile: In-Home Delivery and Inventory Replenishment
    • In Detail: Kroger
      • Making Up Lost Ground
      • Anything, Anytime, Anywhere
      • Omni-Channel Traction
      • Righting the Ship
      • Expanding Food-Centric Offerings Through Partnerships and Acquisitions
    • Top Supermarket/Food Retail Chains: Usage Changes over Time
      • Table Top 20 Supermarket/Food Retail Chains, by Usage Penetration, 2015-2019
    • Bricks-and-Mortar and Online Grocery Retailer Usage
      • Table Groceries Purchased from in Last Three Months and Used Most, by Retailer, 2019
    • Supermarket/Food Retail Chains: Amazon Cross-Usage Trends
      • Table Share of Supermarket/Food Store Users Who Order from Amazon, by Supermarket/Food Store, 2016 vs. 2019
      • Table Share of Amazon Users Who Shop at Supermarket/Food Stores, by Supermarket/Food Store, 2016 vs. 2019
      • Table Share of Amazon Users Who Shop at Supermarket/Food Stores, by Supermarket/Food Store, 2016 vs. 2019
    • Supermarket/Food Retail Chains: Online Grocery Potential
      • Table Top 20 Supermarket/Food Retail Chains: Usage and Online Grocery Usage, 2019
  • Pet Products
    • Overall Pet Industry Sales
      • Pet Product E-Commerce
      • Online Shoppers for Pet Products: Demographics and Psychographics
        • Table Online Pet Product Customer Base by Dog or Cat Ownership Classification, 2008, 2013, and 2018 (in percent and thousands of U.S. dog- or cat-owning households)
      • Projected Channel and E-tail Shares in 2023
        • Table U.S. Pet Product Sales: Modeling of Shifts in Retail Channel Shares, 2015, 2018, 2019, &2023 (percent of overall sales)
        • Table U.S. Pet Product Sales: Modeling of Shifts in Retail Channel Shares, 2015, 2018, 2019, &2023 (dollar sales in billions)
        • Table U.S. Pet Product Sales: Projected Shifts in Top Website Sales, 2019 vs. 2023 (percent of overall sales)
    • 2015-2019 Pet Product Purchasing Trends by Retailer and Channel
      • Table Pet Product Purchasers Share by Channel, 2015-2019
      • Loyalty Holds Steady Even While Average Number of Purchase Channels Increases
        • Table Pet Product Purchasers: Average Number of Channels Used and Loyal Purchasers, 2015-2019
      • Sole-Channel Pet Product Purchasers Segueing to Online Channel
        • Table Pet Product Purchasers Share by Channel, 2015-2019
      • Exclusive Use of Online Channel to Purchase Pet Products Gains Traction
        • Table Sole-Channel Pet Product Purchaser Share by Channel, 2015-2019
    • Amazon Use and Cross-Use Trends
      • Table Amazon vs. Petco and PetSmart: Purchasers and Purchasers Shopping at Amazon, 2015-2019 (percent)
      • Table Amazon vs. Petco and PetSmart: Online Purchasers and Online Purchasers Shopping at Amazon, 2015- 2019
      • Table Pet Product Purchasing Channel Indexes: By Age Bracket, HH Income Bracket, and County Size, 2019
      • Amazon Users vs. Non-Users
        • Table Pet Product Purchaser Share by Channel: Amazon Users vs. Non-Users, 2019
        • Table Pet Product Purchaser Share by Channel: Amazon Users vs. Non-Users, 2019
    • Multi-Channel Pet Product Purchasing Analysis
      • Walmart Is the Top Brick-and-Mortar Pick Among Pet Product Shoppers
        • Table Channel Choices for Pet Products, Last Three Months: 2019 (percent of pet product buyers)
      • Amazon Top Website Among Pet Product Shoppers
        • Table Websites for Pet Product Purchases, Used in the Last Three Months: 2019 (percent of pet product buyers)
    • Pet Product Subscription Service Use
      • Table Subscription Service Users, 2018 vs. 2019 (percent)
      • Table Subscription Service Retailer Used Most, 2019 (percent)
      • Amazon Is Growing Stronger: Pet Food a Standout Success
        • Table Amazon Subscribe & Save Use by Product Category, 2016-2017 vs. 2019 (percent)
    • Amazon Pets Subscribe & Save
    • Hitting the Trends
      • Private Label Pet? You Bet
      • Exclusivity
      • Humanization and Premiumization
      • Fresh Pet Food
    • Click-and-Collect Takes Hold
      • Table Click-and-Collectors, 2018 vs. 2019 (percent)
      • Leading Click-and-Collect Retailers
    • The New Consumer Expectation: Amazon Prime Now
      • Pet Products a Prime Now Draw
        • Table Amazon Prime Now: Products Delivered and Delivered Most Share, 2019
  • Appendix
    • Methodology
      • Consumer Survey Methodology
      • Population Estimates
      • County Size Definitions
      • Table Indexes

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