Amazon is, without a doubt, the trailblazer for the e-commerce industry. In recent years, the company has overseen a monumental shift, driving the online retail industry into incredible heights. Amazon statistics have shown that the company’s disruptive force has radically changed the dynamics of the whole e-commerce ecosystem.
This is to mean, if you are pursuing e-commerce excellence, Amazon should be the benchmark. In other words, you need to train your sight on the Amazon business model. With that said, getting down to the nitty-gritty of Amazon can be a great starting point. Understanding the details behind Amazon’s trajectory, and using reliable e-commerce software, can help you scale the heights of e-commerce with ease.
To help you out, we’ve compiled all the statistics you need to know about Amazon. The compilation will make you intimately familiar with Amazon and illuminate your path to success. Particularly, having these stats at your fingertips will help you to not only run targeted marketing campaigns but also make smarter decisions and keep pace with global e-commerce titans.
1. General Amazon Statistics
In recent years, Amazon has made gigantic strides to become only the second $1 trillion business, after Apple. The company has distinctively managed to stay abreast of changes in the e-commerce industry, bulldozing its way to the crest. Notably, Amazon has been at the fore of the endless shifts in attitude, demographics, technological advancements, and customer preferences. As a result, the firm has maintained a constant upward trajectory, reaching heights never before imagined. The Amazon case study is an open book to brand and retailers, and there is plenty to learn from the growth of this lucrative firm.
The increasing Amazon Market size:
- In 2018, Amazon’s revenue grew by 31%. This is a significant growth rate compared to Google’s 23% revenue increase. (Statista, 2019)
- Interestingly, in Q1 2019, Amazon announced a 17% increase in sales, hitting $59.7 billion in sales. (Amazon, 2019)
- Besides, in the most recent years, Amazon has recorded steady growth in net revenue. To illustrate, 2015 ($107 billion), 2016 ($135 billion), 2017 ($177 billion), and 2018 ($232 billion). (Statista, 2019)
- As of July 2019, Amazon’s market value had reached $993 billion. (Bloomberg, 2019)
- By 2019, Amazon market share of the total US e-commerce is projected to hit 52.4%, up from 48% in 2018. In total, Amazon accounts for more than 5% of the total US online and offline sales. (Feedvisor, 2019)
- On top of that, in 2019, Amazon is predicted to account for 13.7% of the worldwide online retail market sales. Moreover, the company will control over 50% of the US e-commerce market by 2019. (Statista, 2019)
- As of 2018, Amazon held 49% of the lucrative $252.7 billion US market. This more than double the market share of its nine closest competitors, combined. (Vision Capitalist, 2018)
- In Q1 2019, Amazon broke the double-digit barrier in terms of sales. To rephrase it, the company accounted for 10.2% of the total e-commerce sales in the United States. (Statista, 2019)
The growing product Catalog:
- According to statistics, books, wine, services, and wine excluded, Amazon has a catalog with 12 million products (RetailTouchPoint)
- Factoring in the Amazon Marketplace, there are over 353 million products available on Amazon. (RetailTouchPoint)
- Better still, Home & Kitchen (64.3 million), Clothing, Shoes, and Jewelry (33.4 million), and Tools and Home improvement (11.1 million), are Amazon’s leading revenue generators. (RetailTouchPoint)
- Getting down to the finer details, electronics (44%) are the most frequently bought product on Amazon. Others in the list include: clothing, shoes & jewelry (43%), Home & Kitchen (39%), beauty & personal care (36%), books (33%), cell phones & accessories (28%), movie & TV (25%), pet supplies (20%), sport & outdoors (17%), grocery & gourmet food (15%), automotive parts & accessories (13%), and baby products (9%). (Feedvisor, 2019)
- Also, Amazon has a large market share across different categories. The categories include electronic (89.9%), home improvement (83.8%), food (81.8%), sports, fitness & outdoors (89.6%), household essentials (88.8%), and health/medicines (92%). (Jumpshot), 2018)
- More importantly, 60% of the top sellers in the Amazon Marketplace focus on the Home and Kitchen category. (RetailTouchPoint)
- There is no doubt, Amazon market size will continue to grow. Currently, the retailer is present in 14 countries but it ships products to more than 100 countries. (Techjury)
- Amazon has more than 541,900 human employees and over 100,000 robot employees. (Revuefy, 2018)
- For every e-commerce dollar spent by a US consumer, Amazon earns a whopping 49 cents. (Techjury)
Putting these statistics into context, Amazon’s meteoric growth seems unstoppable, at least for now. In fact, the recent data of its monstrous market share are astonishing to behold and it’s evident that the retail giant is the king of the e-commerce empire. The company has formulated an extensive moat for itself, and its dominance in the e-commerce arena is far from waning.
Clearly, owing to Amazon’s monstrous market size, the going is tough for competitors. Even worse, things are poised to get tougher because of the rise of personalized products in e-commerce pioneered by Amazon. However, for brands and retailers selling on Amazon, Amazon ROI statistics provide signs of the massive benefits that lay ahead.
2. Seller and User Statistics
Over the last couple of years, online retail culture has evolved rapidly and e-commerce dominance has continued to grow. Today, sellers are eager to try their luck on different online platforms and buyers have let their preferences known.
The following statistics offer a window into the needs, wants, and behavior of today’s customers. More importantly, they provide an in-depth look into customer experiences with the Amazon platform. Studying these statistics will help you understand online consumers needs. Consequently, you’ll use the insights to create befitting innovations to connect with your loyal customers and high-value prospects.
Amazon Traffic is Astounding
- As of July 2019, Amazon ranked 10th in global internet traffic engagement. (Alexa, 2019)
- Between February 2018 and April 2019, Amazon had over 37 billion mobile and desktop visits. (Statista, 2019)
- In addition, as of September 2018, Amazon had 122 million desktop visits. This dwarfed visits to Wallmart (59 million), eBay (54 million visits), The Home Depot (36 million visits), and Groupon (32 million visits). (Statista, 2018)
- 68.9% of Amazon traffic comes from the US. (Alexa, 2019)
- Amazon Usage statistics have shown that, during April 2019, Amazon had close to 2.4 billion desktop and mobile visits. This is a significant increase from 2.1 billion visits registered in February 2018. (Statista, 2019)
- In terms of percentage, 48% of US consumers visit Amazon.com at least a few times a week. On the other hand, a whopping 89% of US consumers visit Amazon at least once a month. (Feedvisor, 2019)
- Besides, 89% of US consumers are more likely to buy a product from Amazon than other online stores. (Feedvisor, 2019)
Amazon has become the platform of choice
- Interestingly, a whopping 66% of consumers start their search for a new product on Amazon. On the other hand 20% search for a new product on search engines like Google, 4% on brand websites, 4% on retailer websites, 3% on other marketplaces, and 1% on social media. (Feedvisor, 2019), (Statista, 2019)
- When it comes to checking reviews, 79% of US consumers go to Amazon. On the other hand, 32% trust search engine like Google, 25% rely on a retailer website, 11% of consumers go to other marketplaces, whereas 7% trust social media channels. (Feedvisor, 2019)
- In 2018, Amazon overtook Google in product search. At the end of that year, 54% of product search originated from Amazon compared to 48% that began on Google. (Jumpshot, 2018)
- More importantly, before making a purchase, 82% of consumer check prices from Amazon. Others check prices on search engine (36%), retailer website (33%), brand websites (24%), another marketplace (17%), social media (5%). (Feedvisor, 2019)
- On average, 45% of US consumers scroll through at most two search pages when searching for a product to buy on Amazon. Interestingly, 26% of consumers buy the first product to appear on the Amazon search results page. (Feedvisor, 2019)
- 43% of US consumers click on Amazon advert from the web. Of those that click on an Amazon ad on the internet, Google contributes 76%, Facebook (49%), Instagram (21%), Twitter (14%), Pinterest (12%), and Snaptchat (7%). (Feedvisor, 2019)
Search Engines like Google
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Sellers and Consumers can’t resist Amazon
- Amazon seller statistics show that there are over 6 million sellers (including inactive sellers). Approximately, 2.5 million sellers have a product listed for sale on Amazon. Additionally, more than 140,000 Amazon sellers generate over $100,000 in sales annually. (Market Place Pulse)
- Interestingly, 3,000 sellers joining the e-commerce giant every day. (Market Place Pulse)
- Also, as of Q1 2016, Amazon had 310 million active users. This made Amazon the most prominent online retail platform worldwide. (Statista, 2016)
- Prime subscribers and younger generation members are Amazon’s most frequent customers. (Feedvisor, 2019)
- Of the different demographic groups, Millennials spend double the amount that Baby Boomers do on Amazon. (hostsorter)
- A whopping 65% of Amazon customers use computer devices to buy products. On the other hand, 26% use smartphones, 9% use tablets, and 1% use voice assistants. (Feedvisor, 2019)
- In addition, 74% of consumers go to Amazon when they are ready to buy a product. On the contrary, 10% of consumers go to search engines, brand websites (5%), retailer websites (4%), and social media (1% ). (Feedvisor, 2019)
- Interestingly, price (62%) is the biggest motivation for consumers selecting an Amazon Brand. Quality (23%) comes second followed by reviews (12%) and shipping (1%). (Feedvisor, 2019)
Clearly, with its extensive reach, selling on Amazon is an irresistible opportunity. The size of the addressable audience is astounding. Even better, the amount of traffic recorded by Amazon gives you access to a significant pool of established customers. These statistics affirm that Amazon is a comprehensive traffic resource. Chiefly, Amazon is a reliable resource that has evolved to become an integral component of today’s customer broader shopping mindset. But that doesn’t mean selling on Amazon is straightforward. To reap maximum benefits, you need a leading e-commerce platform for small business and a well-orchestrated customer acquisition strategy.
3. Amazon Prime Statistics
When it comes to creating innovations and programs that set the standards, Amazon has no equal. As an illustration, look at the success and growth of the Amazon Prime subscription. Amazon Prime is an exciting membership service that gives subscribers free two-day shipping. The program is a no-brainer for its free shipping. In addition, it provides numerous perks such as access to exclusive deals on Prime Day, access to Prime Video, and a collection of other benefits.
Prime Subscription is growing Fast:
- Statistics show that 63% of all Amazon customers are Amazon Prime Members, which translates to about 90 million Prime members. (CIRP, 2017)
- More data show that as of March 2019, Amazon Prime membership had grown to 103 million members, up from 95 million subscribers registered in June 2018. (Statista, 2019)
- Also, 95% of Amazon Prime customers say they will probably renew their Membership. (CIRP, 2017)
- By the end of 2019, more than 51% of US households will be Amazon Prime subscribers. Compared to 2018 statistics, that’s an increase of approximately 5.2 million households. (eMarketer, 2019)
- In 2018, 58.7 million US households had an Amazon Prime subscription. The number is projected to balloon to 68.7 million households by 2020. (Statista, 2019)
- Better still, 55% of US consumers are current Amazon Prime members, 15% are former Prime members, and 31% are not Amazon Prime members. (Feedvisor, 2019)
The spending by Prime members is encouraging:
- Moreover, 48% of Amazon Prime subscribers buy products online more frequently or once a week. On the other hand, 74% buy a product online at least every few weeks. On the other hand, 37% of nonprime members purchase online just a few times a year. (Feeddvisor, 2019)
- CIRP intimates that, on average, Amazon Prime subscriber spends $1300 yearly, compared to $700 spent by non-member customers. (CIRP, 2017)
- Also, according to Amazon Prime members statistics, the following are the favorite Prime subscription benefits. Free two-day shipping (83%), video and music streaming (10%), PrimeExclusive deals at Whole Foods (5%), free audiobooks & magazines (1%), and other (1%). (Feedvisor, 2019)
- Besides, Statista revealed that on average, an Amazon Prime Member spends $1400 on e-commerce shopping, compared to $600 spending of non-Prime members. (Statista, 2019)
- 34% of current Prime members always buy Prime-eligible products, whereas 53% frequently buy Prime-eligible products. (Feedvisor, 2019)
Amazon earning from Prime subscription speaks volume:
- Amazon statistics show that in 2018 alone, the firm gained $14.17 million in revenue from the subscription services category. (Statista, 2019)
As Amazon statistics have shown, there is an influx of consumers into Amazon Prime. The service has caught the attention of many consumers, and its popularity is set to continue to snowball. What’s intriguing is that Amazon Prime has quashed one of the most prevalent e-commerce challenges, shipping, besides its other inimitable benefits.
The Prime subscription program is a supreme example of Amazon’s innovation prowess. It signifies Amazon’s relentless endeavor to extend its reach and command all facets of the customer purchase journey.
4. Amazon Prime Day Statistics
Another of Amazon’s ingenious creation is Prime Day. This shopping holiday was first held on July 15, 2015, in celebration of Amazon’s 20th anniversary. Prime Day is an annual shopping window that is exclusively available to all Prime members. The shopping holiday is reminiscent of Cyber Monday or Black Friday. However, unlike the other two shopping holidays, Prime Day deals are offered in a 36-hour window.
- The 2017 Prime Day sales registered a record $2.4 billion, dwarfing the $1.5 billion sales recorded in 2016. (Muchneeded.com)
- Over 100 million products were bought in 2018’s Prime Day. (Mediakix, 2018)
- Additionally, 2017 Prime Day sales surpassed Amazon’s sales for both Cyber Monday and Black Friday. (Muchneeded.com)
- Experts believe Amazon made $1.6 billion in the 2018 Prime Day sales. (Techjury)
- In the two days of 2017’s Prime Day, Amazon registered over 187 million visits. (Muchneeded.com)
- Even better, Amazon statistics denotes that approximately 53 million US consumers purchased a product from Amazon on the 2017 Prime Day. (Muchneeded.com)
- The 2019’s Prime Day surpassed Cyber Monday and Black Friday combined. Consumers worldwide bought 175 million+ items. (Amazon, 2019)
- In the US alone, consumers Purchased 1M headphones, 100K laptops, 200K TVs, 650K household cleaning supplies, 100K lunchboxes, 350K luxury beauty products, 1M+ toys, and 400K pet products. (Amazon, 2019)
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Since its inception, Amazon Prime Day has maintained an upward trend. It has delivered the killer blow to the traditional Cyber Mondays and Black Fridays. This is because unlike the Black Friday and Cyber Monday, which are enjoyed across all divides in the e-commerce world, Prime Day is exclusively meant for Amazon users. That said, with its popularity primed for speedy growth, competitors will only peep helplessly as Amazon trailblaze the future of the shopping holidays.
5. Third-Party Seller and FulFillment by Amazon Statistics
Part of the reason Amazon has gobbled up the lion’s share of the e-commerce market is its Affiliate program. This all-conquering plan offers an easy way for e-commerce entrepreneurs to monetize their website. Besides, the affiliate program has been a reliable income generator for Amazon. That’s to say, the affiliate program has been beneficial to both Amazon and e-commerce entrepreneurs.
Also, FBA has lent a hand to sellers who are too naive to handle the packaging and shipping of products. On account of convenience, the FBA has been a revelation that saves time and money. Primarily, it has enabled sellers to deliver remarkable customer experience savored by Amazon users.
- Amazon generated a total of $42.75 billion in third-party seller service revenue in 2018, dwarfing the $31.88 billion generated in 2017. (Statista, 2019)
- 66% of the top 10,000 Amazon sellers use FBA service. (FeedbackExpress, 2018)
- In Q1 2019, 53% of paid units sold on Amazon were facilitated by third-party sellers. The trend has recorded an upward trajectory in the last four years; Q1 2015 (44%), Q1 2016 (48%), Q1 2017 (50%), and Q1 2018 (52%). (Statista, 2019)
- Prime Day 2019 was a record-breaker for the third-party seller as they exceeded $2 billion in sales. (Amazon, 2019)
- Three-quarters of Amazon seller firms had between 1 and 5 employees, in 2018. (Statista, 2019)
Clearly, the Amazon associates program and the FBA provide insights into the growing Amazon’s dominance. The increased income from the third-party seller services doesn’t tell the whole story. However, it gives faint signs of the increased preference by eCommerce entrepreneurs to sell on this platform. Better still, with a big chunk of the top sellers on Amazon using the FBA service, one thing is evident. Customers don’t just flock the platform for the products, but also Amazon’s stellar services.
6. Amazon Alexa and Amazon Echo Statistics
Amazon does not shy away from taking the risk to pioneer innovations that allow for convenience for online shoppers. First of all, Amazon’s deep expertise has been phenomenal. Secondly, its ability to stay at the forefront of the shifting trends has made it easy to deliver on the expectations of customers. Consequently, the global giant has delivered remarkable solutions like Alexa and Echo devices. Amazon Alexa and Amazon Echo were not designed to exclusively streamline sales. However, these applications have had a hand in the process as statistics have revealed.
- 50 million Echo devices had been sold. Interestingly, only 2% or approximately 1 million of Echo device owners have purchased with a smart speaker. (LSA Insider, 2018)
- Also, Amazon Alexa is available in more than 60,000 devices. (Digital Trends, 2019)
- The US consumers have bought more than 100 million Echo devices to run Amazon Alexa. (CNBC, 2019)
- Moreover, as of 2018, Amazon controlled 73% of the US smart speaker market and 27.7% of the global smart speaker market. ( Expanded Ramblings, 2018)
- Surprisingly, of the total Alexa-enabled device owners, only 2% has used it for shopping. However, 20% have used it to monitor a purchase. (The Next Web, 2018)
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Technology in the e-commerce space is increasingly becoming a mainstay even as the landscape becomes complex. Ever since Amazon introduced the Echo speakers, the growth of Alexa has been on high gear. Today, Alexa has become an integral part of how consumers interact with their smart home devices. On the contrary, its takeoff as a tool to simplify the sales process has not been impressive, but a better future is burgeoning.
7. Amazon Web Services Statistics
Aside from its e-commerce dominance, Amazon is renowned for its remarkable public cloud services. With the top brands like AOL, Reddit, Netflix, and Pinterest now running on the Amazon Web Services (AWS), the future looks bright for Amazon cloud services.
- By the end of the Q1 of 2019, Amazon Web Services (AWS) controlled 31.5% of the global cloud infrastructure services market. (Statista, 2019)
- AWS is used by more than 1 million active subscribers in 190 countries. (Visual Capitalist, 2019)
- AWS had 5 times more deployed cloud infrastructure than the next 14 competitors combined as of 2018. (Visual Capitalist, 2018)
- AWS is one of the biggest revenue generators for Amazon. For example, in 2018 alone, the segment generated $25.66 billion in net sales, an increase from $17.46 billion generated in 2017. (Statista, 2019)
- Furthermore, statistics show that in Q1 2019, AWS registered a 42% revenue growth compared to 46% reported in the last quarter of 2018. (Statista, 2019)
- AWS accounted for 41.5% of the total public cloud market as of 2018, gobbling up a market share that’s bigger than Google, Microsoft, IBM, and Rackspace combined. (Visual Capitalist, 2018)
- In 2017 AWS was amongst the top four public cloud provider alongside Microsoft Azure, IBM Softlayer, and Google Cloud. The same year the share of AWS IaaS segment was 51.8%, and it’s raked $12.2 billion in revenue. (Statista, 2019)
AWS is an extremely profitable venture that is starting to imprint its dominance in the public cloud services market. To illustrate, with over 8,000 partner network members, 1,900+ AWS third-party software products, and 70+ infrastructure services, the AWS is a force to reckon. Having generated $26 billion revenue in 2018 alone, AWS is proving to be yet another dominant force unleashed by Amazon.
What do these Amazon statistics mean for brand and retailers?
There you have it: a comprehensive compilation of Amazon statistics. In a nutshell, the statistics show that Amazon dominance is not waning any soon. As it stands, the retail behemoth controls the most significant e-commerce market share. It also offers the most extensive product catalog (at 353 million products) and has an enormous market value of $993 billion.
While most of the Amazon data only provides approximate values, we can see that the platform is the first choice for consumers. Actually, Amazon reports have shown that many customers start their product search and price comparison on the Amazon website. More importantly, for consumers looking for authentic reviews, Amazon is always the first option to spring to mind. Another thing to note is that, while mobile commerce continues to grow, many consumers still shop on their desktop device.
In conclusion, e-commerce landscaping is continually changing, and Amazon has developed the knack to stay ahead with unique innovations. For example, Prime, Prime Day, and FBA are notable pieces of ingenuity that have stamped Amazon’s authority as a global e-commerce giant. There are many e-commerce platforms for vendors out there that can help you sell products or service online. However, with innovations such as Alexa and Amazon Prime Air, Amazon remains an incredible option for many vendors.
What next for Brands and Retailers?
That said, you strategize proactively and borrow a leaf from the Amazon market model. Besides, you need to leverage the available data, like the statistics we’ve compiled, and work with innovative tools to differentiate yourself in the cutthroat online e-commerce space. There is no doubt Amazon provides an established customer base, but for increased acquisition, you should advertise strategically, implementing new technologies, and price more dynamically. Check our guide to different types of e-commerce software for small business to expand your knowledge of the tools you need.