Amazon Strategies and the Amazon Shopper, 2nd Edition
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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. This report provides that insight in four parts: The Amazon Landscape; Amazon Category Analysis: Grocery; Amazon Category Analysis: Pet Products and Supplies; and Amazon Category Analysis: Financial Services.
The Amazon Landscape focuses on Amazon consumer usage and engagement trends and related consumer usage and engagement strategies, as well as Amazon’s competitive positioning.
Focusing on Amazon products and services engagement over time, analysis includes portraits of the Amazon shopper, the Amazon media user, and the Amazon Prime member; as well as Amazon’s strategies to broaden its reach into U.S. homes and wallets. Analysis also includes total retail, e-commerce, and Amazon sales trends; retailer strategies used to fight back against Amazon, including Best Buy, Home Depot, Kohl’s, and Walmart; delivery and pickup trends, including click-and-collect and subscription services and related retailer leadership; retailer-specific mobile app usage and the Amazon app experience; Alexa voise assistant usage and usage methods; and rationales for not using Alexa.
Amazon Category Analysis: Grocery focuses on online grocery purchasing trends over time to assess purchase channel (online and in-store) shifts and preferences according to major retailer and retailer channel, and it considers Amazon’s foray into the online grocery market.
Analysis is devoted to the role Amazon plays in shaping grocery trends, with attention to Amazon cross-usage among major food retailers over time; consumer usage of Amazon services such as Amazon Fresh, Subscribe & Save, Prime Pantry, and Prime Now; and trends and strategies related to Whole Foods and physical store expansion. Data provided include Whole Foods and Amazon cross-usage and cross-pollination; online grocery usage trends; grocery retailer strategies used to fight back against Amazon, including Kroger and Walmart; Amazon cross-usage trends and online grocery potential among major supermarket/food retail chains; Amazon Prime Now usage by category and the Prime Now app experience; Subscribe & Save, Prime Pantry, and AmazonFresh usage trends; and meal kit and Amazon cross-usage and cross-pollination trends.
Amazon Category Analysis: Pet Products and Supplies focuses on consumer pet products purchasing trends over time to assess purchase channel (online, in-store, and multi-channel) shifts and preferences according to major retailer and retailer channel. As part of this focus, this report analyzes retailer loyalty over time and share of spend by purchase channel. Throughout the report, analysis is devoted to the role Amazon plays in shaping these trends, cross-usage of Amazon by customers of other major pet product retailers, and Amazon’s influence on online, in-store and multi-channel purchasing preferences. This chapter also analyses Amazon Subscribe & Save, Amazon Fresh, Prime Now, and other features and services as they relate to the company’s approach to the pet category.
Amazon Category Analysis: Financial Services focuses on Amazon financial services and payments consumer usage and engagement trends and related consumer usage and engagement strategies, as well as Amazon’s competitive positioning over time. It also assesses future opportunities and ramifications related to its current financial services and payments products as well as those in development. Much attention is paid to the Amazon loyalty and value proposition, its relationship to these financial services and payments products, and their mutual relationship to Amazon Prime. Content coverage includes the Amazon cardholder loyalty in action; growth strategies and rationales, such as branch banking, installment payments, debit, Alexa-based applications, Amazon Pay, and Amazon Business; how Amazon’s payment options to broaden the target audience; online payment method preferences among Amazon users and users of major competitors; and Amazon credit card usage and purchase value trends.