Amazon Strategies and the Amazon Shopper, 2nd Edition
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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
- Factors Important to Shopping for Products Online
- 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
- Walmart Flexes In-Store Muscle
- To Partner or Not to Partner?
- The Kohl's Success Story
- Table Kohl's Net Sales, 2014-2018 (billion dollars)
- The Kohl's Success Story
- 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)
- E-Commerce Continues to Grow Retail Sales Share
- 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
- Home Delivery Still the General Rule
- 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
- Retailer-Specific Mobile Apps Are an Important Means of Consumer Engagement
- 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)
- Amazon Sales Trends
- 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)
- Amazon-Branded Consumer Credit Cards
- 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
- Up Next: Branch Banking?
- 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 and Whole Foods: An Ideal Omni-Channel Grocery Partnership
- 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
- Online Food/Grocery Ordering Usage Trends
- 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
- Subscribe & Save usage penetration and assortment trends
- 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
- Why meals kits make sense for Amazon
- 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)
- Walmart Is the Top Brick-and-Mortar Pick Among Pet Product Shoppers
- 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
- Pet Products a Prime Now Draw
- Overall Pet Industry Sales
- Appendix
- Methodology
- Consumer Survey Methodology
- Population Estimates
- County Size Definitions
- Table Indexes
- Methodology
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