If you have been following the National Positions blog, our Forbes articles, or our ebook content over the past year, you have likely seen us discussing ecommerce and Amazon…a lot.
The reason is simple: Consumer behavior has been shifting to Amazon purchasing for the past two years, and this trend is not going away any time soon. So, as we settle into 2022, we figured why not give you some food for thought when it comes to considering Amazon as a new channel for growing your business.
We know you have heard all the basic facts like “Amazon is the world’s largest ecommerce retailer.” So, we are aiming to steer clear of commonly known stuff, and instead, digging into something meatier for you to chew on.
Strap in and get ready for 10 facts and figures about Amazon you might not have known about…until now.
1. The US Loves Amazon Prime
Those of us in the US who use the internet definitely have an affinity for Amazon Prime.
As of June 2020, over 80% of those aged 18-34, nearly 70% of those aged 35-54, and 60% of those 55-plus had Prime memberships.
Furthermore, by the end of 2022, an estimated 76.6 million people in the US will have Amazon Prime—an increase of 10 million from 2019.
2. Prime Members Shop More
In a survey by Feedvisor, they wanted to see if being a Prime Member had any correlation to the frequency of ecommerce purchasing—and boy, did it.
Comparing non-members to members, 13% of non-members report buying products online at least weekly, whereas nearly 50% of Prime Members said they make purchases weekly (if not daily).
3. It’s Not All About Free Shipping
A study from Statista showing the top reasons that ecommerce customers use Amazon uncovered far more than just free shipping as a driving factor.
In fact, the number one reason customers prefer Amazon—raking in 66%—was product availability.
So, as supply chain shortages continue to impact many retail locations in the US, many have been turning to Amazon to fill in the gaps.
4. SMB’s Rule Amazon
One thing that is nearly impossible for smaller brands to do is compete with the big-name brands in the retail space.
This is often one of the drivers for small- and medium-sized businesses to create their own retail space and go direct. But on Amazon, this is a different story. In fact, 60% of sales on Amazon have been attributed to small- and medium-sized businesses on the platform.
Amazon offers an opportunity for these SMBs to expand beyond the walls of their local geographics and take their products to the masses.
5. The Pandemic Has Driven Amazon Growth
This may be obvious to some…but not to others. When the pandemic began in 2020, it was an explosive year of over 32% growth for US ecommerce.
The trend continued in 2021, adding nearly another 10% to this number—and we are not even talking about worldwide. That is for another article.
But since the pandemic began, Amazon has added over 200 million Prime Members, indicating that this ecommerce shopping shift is not a “trend” that is going to burn out anytime soon.
6. Mobile Amazon Shopping Is Huge
Notice we said “shopping” is huge. We didn’t say “purchasing.” Mobile is key to Amazon’s success for one very important reason.
Customers can search and compare anytime—even when they are perusing in physical retail locations. They may want to see if pricing is better on Amazon or the product they are looking for may be out of stock, so they check to see if anyone on Amazon has it.
Around 80% of Amazon browsing starts on a mobile device, but nearly 70% of purchases are done on desktop. So, mobile is influencing purchase decisions, but our trusty desktops are still closing the deal.
7. Amazon Attracts Higher Earners
There have been rumblings about Walmart looking to take a bite out of Amazon’s success, being that as of 2021, Walmart was outpacing the growth of Amazon by nearly 5x.
Amazon still trumps Walmart in overall numbers and users, but Walmart is not slowing down. Now one consideration is not only the volume of customers on Amazon but also the profit potential.
The average household income for Amazon shoppers is just shy of 85k, compared to Walmart.com’s customer base where the household income is roughly 76k. So you may want to consider this income gap when deciding whether or not Amazon is the best bet for your products.
8. Amazon Ads Make an Impact
One of the great things about Amazon is that people are there to shop—or, at the very least, research their options.
Because customers are already primed (see what we did there?) to make a purchase, using Amazon ads to help you stand out can (and does) make a huge difference. According to Serpwatch, 43% of customers click on ads linking to Amazon products, but not just on Amazon.
Seventy-six percent of customers noted that they saw these ads from a direct Google search. So, Amazon advertising makes a difference—both on and off the platform.
9. On Amazon, Home Is Where the Heart Is
You can sell pretty much anything on Amazon, but this begs the question—what are customers looking for on Amazon? While purchasing has had some wild swings over the past two years, products for the home are getting the lion’s share of attention.
By early 2021, outdoor furniture sales had nearly doubled, and products related to grilling were up 70%. There has also been a massive rise in event and party supplies as well as Amazon wedding registry items.
And it’s not just about the buyers. Businesses providing home and kitchen products account for 40% of all Amazon sellers.
10. Looking for LTV? Amazon’s Got That Too
Nobody can deny that once a customer shops on Amazon…they are hooked. (Well, they can deny it, but they would be wrong.)
Amazon has dialed in the user experience for shoppers, and about 90% of customers say they will purchase on Amazon because they trust the shopping experience. It is estimated that Prime shoppers spend nearly $2,000 annually on Amazon’s platform, up from around $1,400 in 2019.
So, when it comes to attracting customers and encouraging repeat purchases, Amazon definitely has the buying power.
Your Brand on Amazon
This is just a taste of all the benefits your brand can take advantage of when it comes to Amazon. Are there cost considerations and strategies you need to consider? Absolutely.
But the question really comes down to opportunity. Is the opportunity worth the return? If done the right way, we believe it is.
Over the past two years, we have taken more brands on Amazon than in the history of National Positions. We are even expanding this part of our agency to keep up with demand. So, if you are trying to figure out if Amazon is the right next step for your business, connect with our team to review your options.
You can click here to visit our contact page or email us directly at Marketing@NationalPositions.com, and we can set you up to Zoom with our Amazon team.
It is going to be a great year, so whatever opportunity you are considering we can’t wait to help you make it a reality.