UK Amazon: Creating an Ecosystem Market Report 2023

Stay ahead of the curve and future-proof your business with Mintel’s Amazon: Creating an Ecosystem Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest online retail market trends and consumer behaviours affecting your business. Get a 360° view of the Amazon market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

• The impact of the cost-of-living crisis on Amazon shopper numbers and the impact on its business.
• An overview of the global Amazon business, including revenues and performance of key business units.
• Amazon’s position within the UK market, including market share.
• A profile of Amazon shoppers by key demographics and frequency of shop.
• Products purchased via Amazon in the past year by key category.
• Amazon Prime membership, including a profile of members and services used and barriers to enter the scheme from non-members.
• Amazon device ownership and how this impacts retail purchasing.
• Attitudes to price and convenience of shopping with Amazon as well as ethical and environmental considerations of shopping with the business.

Amazon Market Outlook

Amazon has become a byword for value, which will naturally drive shoppers to its platform during the cost of living crisis. However, inflationary pressures have also significantly reduced Amazon’s own profits as it faces rising costs across the business and rounds of job losses and a focus on profitable areas have seen the business take on an uncharacteristically defensive stance, at least in the short term.

• Amazon market opportunity: 73% of Amazon’s shoppers believe that it has better prices than most other retailers.

Amazon Trends, Opportunities and Challenges

Competition from other established players

Amazon is the dominant player in the online space and the UK’s largest non-food online retailer. However, growing competition within the marketplace space, from eBay and newer entrants like Superdrug, is Amazon’s biggest threat. More specialised marketplaces dealing in a particular category pose a threat to new seller acquisition for Amazon

Diving deeper into the ecosystem

For Amazon, continued growth will come from encouraging more of its customers to engage deeper into its ecosystem, such as owning an Amazon device or Prime membership. Growing this number allows Amazon to derive multiple revenue streams from a single shopper. However, Amazon cannot lose its focus on relentless innovation and value-adds to the Amazon experience of being a loyal member of the ecosystem.

• Amazon market opportunity: 30% of UK consumers who shop with Amazon are Prime members and have at least one Amazon-made device in their homes

To learn more about the UK Amazon Market, including a five-year forecast, consumer behaviour analysis, and market opportunities recommendations, purchase our full UK Amazon: Creating an Ecosystem Market Report.

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Expert Insights from the Retail Category Director

This report, written by Nick Carroll, the director of retail , delivers in-depth commentary and analysis to highlight trends in the online retail market and add expert context to the numbers.

Amazon has grown to be the largest non-food retailer within the UK and the dominant player within the online retailing market. Key to this success has been building an ecosystem, anchored by Amazon Prime, which ensures an element of loyalty and consistent purchasing for the retail operation. Due to strong value credentials the cost of living crisis has, and will, provide significant operation for Amazon but its enlarged size and now mature status means inflationary pressure is hitting Amazon’s bottom line just as hard as its shoppers.”

Nick Carroll
Category Director Retail Insights