Why Shoppers Want Amazon More Than Any Other Retailer

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Why Shoppers Want Amazon More Than Any Other Retailer

By Joe Skorupa - 10/24/2018

Amazon Prime is the most successful membership program the retail world has ever known. Some would argue it is not a traditional program and that is the point. Amazon blew up the traditional model when it created Prime and launched something new and devastatingly successful.

But Prime is not the only reason shoppers go to Amazon again and again. According to the 2018 RIS Shopper Study, which features insights from 5,000 shoppers, they go to Amazon because of its shipping offers, reliability promises, quick and easy convenience, and more.

Here are key takeaways from the study that explain the Amazon effect in retail that go beyond the mega-numbers about Prime Day, revenue growth, market share, trillion-dollar market cap, and so forth. Here’s what shoppers have to say.

Why Amazon Prime Is a Dominant Force

  • Nearly seven out of 10 shoppers (67%) age 15 and older are members of Amazon Prime, which includes Amazon Student Prime, shared Amazon Prime Household members, and other Prime programs.
  • Amazon Prime members (67% of the shopping public in the U.S.) spend an average of $83 per month. Amazon has publicly noted Prime membership is now more than 100 million. So a rough estimate calculates that Amazon’s monthly revenue from Prime members is around $8.3 billion per month or $99.6 billion per year.
  • 30% of shoppers spend more than $100 per month and 13% spend more than $150 per month.
  • The top five reasons Amazon is chosen by shoppers are free shipping (50%), low prices (45%), wide product selection (38%), Amazon Prime (37%), and fast shipping (36%). These five pillars are why Amazon has emerged as a dominant force in retail and the reason why shoppers go to Amazon again and again.
  • No other retail membership programs come close to matching the reach of Amazon Prime, including the big three mass merchants. Walmart has no loyalty/membership program, Costco only reaches 26% and Target 21%.
  • Amazon is in a class by itself as a primary place to go to search for products shoppers want to buy, chosen by 66%. This compares to Walmart (41%), going to a store (23%), Google (22%), and Target (22%).
  • Shoppers are increasingly using voice shopping assistants, where Amazon has staked out a leadership position. While it can be fairly said there is a slow rate of growth in shoppers using voice-activated assistants for making purchases, year-over-year data shows that Amazon is Amazon leading the way. In 2018, 11% of shoppers say they used an Amazon voice assistant to make a purchase compared to 6% last year. Both Apple Siri and Google Home lost ground compared to Amazon.

These are just a few of the takeaways from the 2018 RIS Shopper Study. For a complete set of charts and insights click here.

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