This guest post is by Erik Mathes, Content Marketing Manager at Appeagle. In it, he discusses Amazon statistics that provide insight into how sellers can better navigate its marketplaces.
As an Amazon seller, you already know that the Amazon Marketplace is a dog-eat-dog world. Between monitoring your prices against your competitors, managing inventory and shipping, and handling customer service to ensure your store has a top seller rating, you probably don’t have much free time to perform research on your market or on Amazon itself.
On top of that, Amazon is known for keeping its sales figures and customer tallies top secret. That means that finding key metrics to drive your decision-making is tough in and of itself, and the numbers you dig up may not always be up-to-date.
But that’s okay; we’ve got your back.
On top of being the most-trusted repricer for Amazon sellers, we’re always on the lookout for valuable information to help our clients become even better at running their businesses.
With that in mind, we’ve compiled a list of the most important (and most current) Amazon statistics we could find and put them together for you to easily reference whenever you need. These numbers are indicative of how massive and enlivened the Amazon Marketplace is, and will be the perfect starting point for when it comes to weighing important decisions that will affect the future of your Amazon store.
The first five Amazon statistics will paint a picture of the overall size and reach of the Amazon Marketplace, and statistics 6 through 10 will delve deeper into consumer spending habits.
Without further ado, let’s jump into some shocking Amazon statistics!
1. As of 2015, there are 304 million active accounts on Amazon.
You’re not reading that wrong.
There are literally hundreds of millions of people using Amazon to make purchases in every category you can imagine. That means there’s room for just about every seller to be successful, pending they focus on delivering the right experience to the customer in every interaction.
One way for sellers to free up time is to focus on customer service by using technology to handle some of the more mundane management tasks, such as repricing and inventory management, so they can put their energy into offering more personalized interactions with customers and creating a superior customer experience.
2. There are approximately 54 million Amazon Prime members, and that number is growing fast.
Amazon Prime is a premium subscription service that offers its members a variety of perks, including access to Amazon’s online movie and music streaming libraries, unlimited image storage on Amazon’s cloud storage database for $99 a year.
But the creme de la creme of Prime perks is free expedited shipping that allows Prime members to get their goods in between 0 and 2 days.
With people becoming more accustomed to instant gratification, becoming a Prime-eligible seller is clearly in your best interest. According to Business Insider, there are around 54 million Prime members, and that number is growing faster than you can imagine.
3. The #1 reason that Amazon customers become Prime members is…wait for it…FREE 2-Day Shipping!
When Amazon Prime members are asked why they choose to pay $99 a year for the service, an overwhelming majority — 78%, to be exact — say that it’s because of the free 2-day shipping.
So, if you’re an Amazon seller looking to boost sales, it’s vital that you focus on increasing how fast you can deliver your products in order to become Prime eligible. Once you reach this elite seller status, your sales are bound to boost.
4. In 2014, over 2 billion products were sold on Amazon Marketplaces, yet as of 2016, only around 20 million of them were eligible for Prime status.
If you truly want to succeed on Amazon, becoming a Prime-eligible seller is what your business should focus on.
It’s clear that Amazon users want their orders shipped to them fast, and when it comes to choosing a Buy Box winner, Amazon’s algorithm gives preference to sellers that fit in the top tier of shipping times (0 to 2 days).
But as of 2016, less than 1/100th of the items sold on Amazon are Prime-eligible.
That means there’s plenty of space within the Amazon Prime market for savvy sellers to fill.
Implementing tools like Appeagle automated intelligent repricing software could be the missing link in your business equation when it comes to unlocking record sales and profits because it will allow you to have more control over your prices while freeing up your time to focus on more customer-facing aspects of your company.
5. The average non-Prime Amazon user spends $625 a year. Prime members may spend twice as much — or more.
When it comes to spending habits of Amazon users, it turns out that a Prime member is going to spend a lot more than her non-Prime counterparts.
It could be the happy rush that consumers get when they receive instant gratification in the form of 2-day (or faster) shipping. Or maybe seeing the Prime logo next to a wanted item makes it all the easier to click “Buy Now.”
Whatever the case, a study conducted by Consumer Intelligence Research Partners (CIRP) released in January 2016 found that Prime members spend an average of $1,100 per year, compared to $600 for non-Prime users.
In another CIRP study released one year earlier, it was found that Prime members spend $1,500 per year, so it’s fair to assume the true average sales figure falls somewhere between $1,100 and $1,500.
Bottom line: Set your sights on becoming Prime eligible, and your company’s bottom line will get a hefty boost.
6. Nearly half of web shoppers go directly to Amazon for product searches.
Here’s some news that is bound to make any Amazon seller smile: a study from BloomReach in 2015 found that 44% of online shoppers go directly to Amazon before checking any other site.
That number is up from 2012 when a study by Forrester found that 30% of online shoppers bypass the entire web to visit Amazon first when doing research to make a purchase.
With over $300 billion in online sales in 2015 and tremendous growth expected to continue way into the future, smart Amazon sellers can reap major rewards if they focus on making the right parts of their businesses as strong as can be.
7. During the 2015 holiday season, nearly 70% of Amazon.com customers used a mobile device to make purchases.
If you didn’t think mobile was a massive part of Amazon, these figures should have you convinced otherwise.
Nearly 70% of Amazon customers used a smartphone or another mobile device to make a purchase during the last holiday season.
And, with the number of people who use Amazon’s mobile app doubling from the previous year, sellers must be sure their product images and descriptions are optimized for mobile users so that they can maximize their share of sales to this growing group of buyers.
8. In 2015, 51% of shoppers planned to do “most” of their holiday shopping on Amazon.
A Reuters/Ipsos survey of over 3,200 adults in November 2015 found that more than half of them planned to do the majority of their holiday shopping on Amazon.
Compare that figure to the 16% who said the same thing about Wal-Mart, 3% who said the same about Target, and 2% who picked Macy’s as their primary place for presents, and you see just how dominant the Amazon Marketplace has become.
9. Amazon made more than one-third of total online sales on Black Friday in 2015.
According to Slice Intelligence, a data company that collects information from packaging receipts linked to its tracking app, Amazon dominated Black Friday in 2015.
Just how much did Amazon beat up on its competitors?
To the tune of collecting 35.7% of all online sales on November 27th.
Best Buy came in at a distant second place, raking in a mere 8.23% of total Black Friday sales, or less than a quarter of what Amazon made.
For Amazon sellers, this is great news.
But, it also sends out a big warning to make sure you have your inventory ready — and all your systems in place — well before Black Friday hits in order to maximize your sales and your bottom line during this wild day of online shopping.
10. Nearly twice as many millennials use Amazon Prime compared to baby boomers.
When it comes to consuming on-demand video entertainment, 19% of millennials rely on Amazon Prime for streaming service, versus only 16% of gen-Xers and 11% of baby boomers.
While these Amazon statistics don’t directly tell you much about each of these groups’ shopping habits, it does shed light on who Amazon sellers might want to be targeting with their Prime-eligible products.
Since nearly twice as many millennials are using Prime for video compared to baby boomers, logic dictates that a larger number of younger consumers will be using Prime to make purchases than older buyers.
Smart Amazon sellers who are eligible for Prime should then focus on selling items that are more attractive to a younger demographic.
And there you have it!
We hope these Amazon statistics help you to better navigate the Amazon Marketplace.
And, if you’re curious about using intelligent pricing to automate the prices of your Amazon listings — you know, to save you time, help you make more sales at higher margins, and win the Buy Box more frequently — experience the power of Appeagle for yourself with a free 14-day trial.