Founded in 1994, Amazon has grown to be the world's largest online retailer. This is no shocker as in the first month of its launch; Amazon had sold items to customers in 45 different countries. In the same period, the brand began generating 20,000$ a week in sales.
Amazon has become a household name as online shoppers go to Amazon for literally anything from seasonal products to everyday groceries.
Here are 37 amazing Amazon statistics to know!
- 1. Why Customers Purchase on Amazon
- 2. Number of Products Sold Every Minute
- 3. FBA allows Merchants to Increase Sales
- 4. Consumers Visit Amazon for Inspiration
- 5. Amazon's Popularity
- 6. Amazon Prime Membership Number
- 7. Amazon Prime Members Spending
- 8. Consumer Trust
- 9. The Leading Amazon Product Category
- 10. Amazon Revenue
- 11. Amazon's Ecommerce Share in the United States
- 12. Amazon offers more than 1 million home improvement items
- 13. Over 50% of Every Amazon Sale comes from Third-party Merchants
- 14. Many Consumers don't Use Alexa for Purchases Yet
- 15. Cyber Monday and Black Friday aren't as Profitable as Prime Day
- 16. Amazon Loses Money Per Minute when the Website is Down
- 17. There are Millions of Third-party Sellers on Amazon
- 18. Third-party Sellers are Profitable
- 19. Amazon is the Second Organization to Reach the $1 Trillion Mark
- 20. Amazon's Holiday Rush is Massive
- 21. Amazon made it Huge on 2018 Prime Day
- 22. Amazon's Market Share
- 23. Amazon's Shipping Restrictions
- 24. Americans Love Prime
- 25. Cadabra or Amazon
- 26. Relentless.com is Amazon
- 27. Amazon Shipping Locations
- 28. Teens Love the Online Retail King
- 29. Amazon's Free and Fast Shipping is a Prime Membership Puller
- 30. Amazon Warehouse Workers in the United Kingdom Feel Exploited
- 31. Amazon Fulfillment Centers
- 32. Amazon began in Jeff Bezos's garage.
- 33. Amazon Shoppers are Wealthier and more Educated than Others.
- 34. Amazon Prime Offers Next Day or Same-day Deliveries
- 35. Amazon Book Sales in 2017
- 36. 2019 was the Year of the Kindle Rise
- 37. More than half of U.S. eCommerce Shoppers State that Amazon is the most Innovative Retailer in the Country
1. Why Customers Purchase on Amazon
Consumers love making purchases on Amazon. But what motivates the decision to buy on Amazon?
The leading factor is Amazon's free and fast shipping, with the second one being their broad selection. These are mega purchasing decision considerations by 79% and 68% of Amazon customers.
Studies also reveal that pricing is a top factor motivating customers to purchase on Amazon. Over 48% of Amazon buyers list it as a crucial shopping consideration.
Most Amazon customers also love the flexibility that the brand offers for returns and the first shopping experience. Below 50% of all Amazon, buyers state that these factors are huge in pushing them to shop on Amazon.
2. Number of Products Sold Every Minute
Many small and medium-sized businesses (SMBs) numbering in their millions work with Amazon. And here's the reason.
SMBs in the United States, on average, sell 7400 products per minute. What's more interesting is that over half of the products sold on Amazon stores globally are from SMBs.
So you can say that Amazon provides a significant opportunity for Small and Medium Businesses to prosper. Small and Medium Businesses that sell via Amazon stores have created approximately 1.8 million jobs globally.
3. FBA allows Merchants to Increase Sales
Registering in FBA may help boost sales and increase SKU conversion rates.
A major aspect of this has to do with Amazon Prime. Prime members get free 2-day shipping on all eligible products, making them more likely to purchase products with the Prime checkmark.
Also, when shoppers see the "Shipped By Amazon" tag, they will most likely buy it than if random merchants shipped it.
The massive Amazon equity merchants get via FBA is a tremendous advantage that cannot be overemphasized.
4. Consumers Visit Amazon for Inspiration
More than 22% of online shoppers visit Amazon first for inspiration if they do not have a particular item in mind for purchase.
Marketplaces such as Etsy and Amazon are the top first touchpoint for consumers that don't have a particular product in mind yet. The other platform is search engine giant Google, the leading destination for buyers starting the purchase journey.
Though buyers lean towards Google and Amazon when researching may seem intimidating to specific retailers and brands, it doesn't have to be. Businesses can align to such trends by providing quality information on products beyond features and pricing.
This is majorly achieved through content marketing and customer messaging.
5. Amazon's Popularity
Amazon's popularity is indisputable. The brand comes 2nd on the list of the most popular online shopping platforms in the United States. Over 97 million mobile users access Amazon's app monthly. Walmart, the top-leading shopping app, receives more than 119 million users monthly on its app.
That said, Amazon is light years ahead of any other competition. The platform has made online shopping insanely easy, revolutionizing the process, and this drives millions of buyers to them every month.
So it is no surprise that Amazon leads the list of the most-visited mobile retail platforms in the United States. For example, over 63 million users visited Amazon websites in September 2018 through their mobile devices.
6. Amazon Prime Membership Number
Amazon Prime is a subscription service offered by the brand. The initiative was launched in 2005. And it includes services such as music and video streaming, free 2-day shipping, and a host of other benefits.
Currently, there are over 148.5 million Amazon Prime subscribers. This was a huge rise from 2018, when they boasted 100 million.
Prime shoppers have a higher engagement than non-members. A recent survey showed 20% of Amazon prime members stated that they purchased products on Amazon a couple of times weekly. 7% said they did so on a nearly daily basis.
Amazon consistently adds additional features to the Prime subscription-like free delivery, when consumers purchase from Amazon Fresh. So the benefits are apparent, and members love it.
7. Amazon Prime Members Spending
Prime members spend an average of $51 to $100 monthly on Amazon, while non-Prime members spend about $600 annually.
This means that Prime members provide over twice the yearly spending of non-Prime buyers.
This stat isn't that shocking as Prime members are mainly loyal Amazon shoppers who will likely consistently make purchases on Amazon.
Plus, with a yearly fee of over $100 per year, many Amazon Prime members feel they have to justify their subscription.
So the more Prime members buy on Amazon, the more they get out their subscription, which means no guilt over the cost.
8. Consumer Trust
Consumers trust Amazon, and that is with reason. Based on a survey of over 2000 United States customers, 92% of buyers state that they would prefer to buy items from Amazon than other eCommerce platforms.
You can't deny that Amazon is the focal point of eCommerce. This is proved by consumers who buy products online consistently. 99% of customers who buy from Amazon weekly and 98% of those that purchase on the platform daily agree that they will choose Amazon over the competition.
Attaining customer trust is a non-negotiable step towards becoming a successful business. Amazon's trust with its customers is hinged on transparent and consistent purchase and product experiences.
So if you run a business, nurturing customer relationships is a necessity. And you can build trust with your audience by offering them high-quality customer service, user product reviews, targeted content, and quality products.
9. The Leading Amazon Product Category
Out of the many product categories, electronics is the leading category in popularity with Amazon shoppers in the U.S. More than 60% of Amazon shoppers in the United States have bought clothing and fashion accessories. This is followed closely by the beauty and personal care at 49%. Kitchen and home products come in at 40%.
Amazon is consistently growing its product and category coverage. And the diverse range of the items offered on the platform is one of the significant strengths that enables it to stand out from the competition. This is a major reason so many brands find it difficult to compete with Amazon.
10. Amazon Revenue
With the rise of eCommerce sales globally, Amazon's revenue reflects the same.
For instance, in the fourth quarter of 2020, Amazon made $125.6 billion in sales revenue. This is a 44% year-on-year increase.
In Amazon's fourth-quarter 2020 revenue, the net income constitutes 7.2 billion, double the last year's figures.
A huge chunk of Amazon sales consistently comes from North America. With sales from the region totaling $75.3 billion. However, the international sales pale compared with $37.5 billion in the same period.
11. Amazon's Ecommerce Share in the United States
The retail giant has a whopping 50% of the eCommerce market share.
Amazon alone boasts of an inventory of over 12 million products across all its services and categories. But if you look deeper out of all the products that marketplace sellers list, this number rises to about 350 million. That's a lot of competition. However, it provides a ton of sales and visibility.
Amazon, for example, was responsible for over 47% of Us eCommerce spending in 2020.
12. Amazon offers more than 1 million home improvement items
The home improvement section seemed to be immune to the Amazon effect for a while.
The perk that came with buying such products from a brick-and-mortar store that offered professionals to help you pick the perfect product was a major reason.
But a recent report details that Amazon possesses a huge chunk of the home improvement industry market share. And offers over 1.1 million products in the industry.
Home improvement sales make it clear that more and more shoppers are shifting to eCommerce. This is even in industries previously dominated by brick-and-mortar shops.
13. Over 50% of Every Amazon Sale comes from Third-party Merchants
Third-party merchants keep flocking to Amazon, and this trend has maintained an upward growth for years. This is great news as more than 50% of all Amazon sales come from third-party sellers.
The percentage of third-party sellers on the platform has been steadily increasing over the previous five years. From 53% to the end of 2021.
This is excellent news for the brand, which pulled in over $27.33 billion in revenue from third-party sellers in the third quarter of 2020.
14. Many Consumers don't Use Alexa for Purchases Yet
Though consumers have bought about 50 million Amazon Echos since the launch in 2015, they are not used en masse for purchases. Shoppers ask Alexa questions and check the status of orders, but that's about it. Just a tiny percentage (2%) use Alexa for making fresh purchases.
This proves that consumers still prefer reviewing products and reading their reviews before purchasing.
15. Cyber Monday and Black Friday aren't as Profitable as Prime Day
If you are searching for a mega boost in sales, then Prime Day should be the focus on your calendar. Customers on Prime Day spend and convert more (up to 18.6%) than any other day. In 2021, Prime Day raked in $11 billion in sales. Consumers even sign up more on Prime Day as well. This is also at a higher volume than Cyber Monday and Black Friday.
16. Amazon Loses Money Per Minute when the Website is Down
In August 2013, the Amazon website was down for under 50 minutes. And in the short time frame, the platform lost $4.8 million dollars. Amazon lost $120,000 each minute. This shows the importance of ensuring your eCommerce store's uptime, as downtime leads to terrible losses in sales.
17. There are Millions of Third-party Sellers on Amazon
Amazon has over 6 million third-party sellers. And in 2020, the Amazon marketplace statistics revealed that over 190,000 new resellers came on board. These resellers all joined the retail giant in the first quarter of 2020. Now, Amazon is adding 700,000 to 800,000 new sellers every year. Though that number hasn't rapidly increased, the platform still receives about 2000 new sellers daily.
18. Third-party Sellers are Profitable
Amazon's website statistics revealed that 86% of third-party sellers are profitable.
Sellers on the platform pull in from $26,000 to $810,000 annually. So it's not shocking that a huge percentage of resellers keep using the platform consistently.
19. Amazon is the Second Organization to Reach the $1 Trillion Mark
Amazon attained the $1 trillion market capitalization mark on the 4th of September 2018. This was nearly a month after smartphone brand Apple hit the previously unimaginable milestone.
20. Amazon's Holiday Rush is Massive
Amazon warehouses ship more than 1 million products per day during the annual holiday rush! This comes at a price, though, as the speed of sorting and packaging are directly connected to warehouse injuries. Warehouse injuries spike above the national average during such seasons.
21. Amazon made it Huge on 2018 Prime Day
Many experts believe that Amazon hit $1.6 billion during the 2018 prime day. This is usually the biggest shopping event on the platform, and 2018 was a hit.
The online platform offers Prime consumers price cuts and promotions, and amazing deals on Prime Day, thus generating massive sales. Though Amazon did not share its 2018 prime day sales data, top experts in the field believe it pulled in $1.6 billion in under 36 hours.
22. Amazon's Market Share
Amazon possesses over 90% market share in more than 5 product categories. The retail giant enjoys the large chunk of the pie in kitchen and dining at 94%, batteries at 97%, golf at 92%, home improvement tools at 93%, skincare at 91%.
23. Amazon's Shipping Restrictions
Currently, Amazon does not ship to 5 countries. These nations include North Korea, Syria, Sudan, Iran, and Cuba. So consumers there cannot become Amazon customers for now. In previous years, the retail giant has also been fined for allowing people in blacklisted countries to shop.
24. Americans Love Prime
Statistics reveal that over two-thirds of American homes have Prime memberships (112 million U.S. Amazon Prime subscribers).
Prime members can enjoy T.V. shows and movies via Prime Video alongside free 2-day shipping. Also, Prime members have access to free audiobooks, ebooks, and magazines via Kindle and Audible.
25. Cadabra or Amazon
This is an interesting one. Amazon was almost called Cadabra. That is the cadabra in Abracadabra.
Amazon founder Jeff Bezos intended to name his eCommerce brand Cadabra. The inspiration was from Abracadabra (the magic word term) to send the message that online shopping had some magic. But his lawyer stated that the name could be misheard as cadaver when spoken aloud.
26. Relentless.com is Amazon
Amazon wasn't Jeff Bezos's second choice for a name. It was Relentless, though; most people didn't approve of it.
Give it a shot!
27. Amazon Shipping Locations
The eCommerce giant ships to over 100 countries. Amazon ships products all over the globe; however, in particular countries, like India, it ships with limitations.
Amazon utilizes your I.P. address or click delivery address to know your location and automatically lets you know if the item you've picked can be shipped to you.
This makes the shipping experience a lot more seamless for consumers, as they'll know right away if the product can be delivered to them.
28. Teens Love the Online Retail King
Over 43% of American teenagers stated that Amazon is their favorite shopping platform.
In the particular survey, which involved 5000 American teenagers, over half of them expressed their choice of the website.
29. Amazon's Free and Fast Shipping is a Prime Membership Puller
One of the primary reasons online shoppers on the eCommerce platform become Prime members is free shipping. These same shoppers opt for Prime membership because they want fast deliveries.
The truth is parallel for a lot of eCommerce platforms.
Websites such as AliExpress provide free shipping on over 75% of its items. In fact, free shipping is amongst the many perks that made Amazon Prime very popular.
30. Amazon Warehouse Workers in the United Kingdom Feel Exploited
It isn't all good news for the eCommerce giant. 89% of Amazon workers in the U.K. warehouses feel like the retailer exploits them. Almost nine out of 10 U.K. Amazon workers aren't satisfied with the conditions of working at their warehouses. This is an aspect you'd expect Amazon to sort out shortly.
31. Amazon Fulfillment Centers
Amazon has more than 100 fulfillment centers in North America. Considering the size at which the popular retail brand operates, it isn't that surprising to know that Amazon has that number of warehouses available. Beyond the 100 fulfillment centers, there are also more than 25 sortation centers.
32. Amazon began in Jeff Bezos's garage.
Amazon was launched out of Jeff Bezos's garage in 1994. This is quite an intriguing fact when you think of how huge this online shopping platform has become.
It had a humble beginning with Jeff Bezos' parents supplying most of the initial startup capital required.
33. Amazon Shoppers are Wealthier and more Educated than Others.
Amazon doesn't just take a huge chunk of the eCommerce pie from all its competitors combined, but it also possesses the most educated and wealthy shoppers.
Amazon shoppers have higher education than the average American, and the average net worth of over 50% of Amazon shoppers is $500,000. Plus, 50% of Amazon shoppers have college degrees.
34. Amazon Prime Offers Next Day or Same-day Deliveries
Amazon Prime now offers next-day or same-day deliveries to over 70% of Americans. In 2019, Amazon announced that it would cut down its prime 2-day shipping to a single day or a couple of hours after the shopper makes an order. And the current Amazon Prime membership statistics reveal that the retail giant has delivered on its promise already.
A lot more people subscribed to Amazon Prime in 2020 due to the shipping issues that hit the global e-commerce industry.
35. Amazon Book Sales in 2017
Though the eCommerce leader does not regularly publish data on its book sales, books were the first items that Amazon sold in the early days of its launch in 1995. And that hasn't changed much, as even today, books are a huge contributor to the brand's revenue.
Based on the last Amazon statistics for book sales, it rose by 47% in 2017, raking in an incredible $3 billion. The most popular choices were books on spirituality and religion in that period.
36. 2019 was the Year of the Kindle Rise
Amazon sales statistics for books reveal that Kindle sales rise year after year. While Amazon won't publish its book revenue statistics, statements from the brand have implied that the company has experienced some substantial growth in 2019.
Aspects with sizable growth included Kindle unlimited independent publishing and Amazon publishing. Based on data-backed estimations, the retail giant probably has over half of the United States print book market. Concerning the ebook market, the present estimates from American publishers put Amazon's share at about three quarters.
37. More than half of U.S. eCommerce Shoppers State that Amazon is the most Innovative Retailer in the Country
Amazon data reveals that two-thirds of online shoppers agree that the brand is the most innovative website retailer. The e-commerce giant isn't the average online vendor.
This is for various reasons. Prime Now is a perfect example. Prime Now is a service that enables consumers to receive goods in under an hour. Online shoppers in over 49 United States locations and nine countries can use the service.
Some other compelling, innovative technologies from the retail giant include:
- Amazon Web Services: this is a cloud computing interface that aids retail operations.
- Amazon Echo: the small speaker innovation listens and responds to voice commands.
The above Amazon statistics prove that Amazon is undeniably here for good. The platform is stuffed with opportunities for merchants from all industries. And also great for consumers looking for a fast and reliable eCommerce platform.
Use these Amazon statistics to understand the eCommerce giant and maximize your business on the Amazon market.