The popularity of Amazon - the retail phenomenon which started in a garage and now, nearly a quarter of a century later - its success is unbelievable. But believe it as new research from Mintel reveals that almost nine in ten (86%) Brits are Amazon users/shoppers. According to Mintel, more Amazon shoppers have increased their shopping (21%) with the retailer than decreased it (13%) over the past year. Overall, most (70%) Amazon customers shop with the retailer at least once a month, while just under a fifth (17%) use the retailer on a weekly basis.
In terms of what’s in the basket, hardcopy media (books, DVDs or video games) (39%) remains Amazon’s most popular purchases. This is followed by electricals (30%), fashion/jewellery (30%), and toys (20%). An impressive 45% of households in the UK have some form of Amazon produced device, with Kindle (23%), Fire TV/TV Stick (16%), Fire Tablet (14%), and Echo (11%) proving the most popular.
Inherent trust in this retail giant is confirmed by the fact that as many as half (51%) of Amazon users assume that the e-retailer has the cheapest prices, while six in ten (59%) say they are loyal to the company. What is more, 70% of Amazon shoppers say it is the first retailer they go to when shopping online.
Nick Carroll, Mintel Associate Director of Retail, said:
“Amazon is a phenomenon of 21st century retail. In a little over 20 years, it has grown to be a retailer that nearly all consumers use. It has achieved this through a relentless focus on customer-facing investment and innovation. Amazon started selling books, but now holds a significant share in almost all retail categories, helped by the incubation of thousands of independent sellers through its Marketplace scheme. The retail giant has expanded far past the bounds of normal retail operations into media streaming, consumer electronics and cloud computing. Amazon has built a platform that customers are both happy to use, and pay for the privilege of doing so via its various subscription services.”
“While most consumers already shop with Amazon, the retailer continues to gain market share by increasing the number of Prime members. That’s because Prime members buy significantly more, and across a broader number of categories, than non-members. This is why Amazon continues to add to the list of Prime-exclusive services, with Premier League matches coming in the second half of this year. Regardless of the reasons people join Prime - there is a net benefit for the retail side of the business,” Nick adds.
Amazon is not the high street killer
The impact of Amazon’s reach into the physical retail sector is confirmed by the fact that almost half (45%) of Amazon users believe that the e-tailer is responsible for physical stores closing. Meanwhile, three quarters (75%) of Amazon shoppers say they often check the prices of products they see in-store on Amazon. And physical retailers are probably being used as showrooms, as 70% of Amazon shoppers say they research products elsewhere but then buy via the site.
But while many acknowledge the negative impact of Amazon on the high street, some 40% of Amazon users believe it supports independent retailers and 29% believe that shopping via Amazon Smile is a good way to give to charity.
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