Amazon remains a defining force shaping expectations for retail and ecommerce. Combining scale, innovation and operational excellence, the retail giant sets a pace few competitors can match. The company's US…
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Retail
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US Retail’s Big Three: The Amazon Effect
"In a competitive landscape where shoppers are loyal to price, the next phase will be defined by how well Amazon and other major retailers deliver clearer value, stronger trust and more meaningful differentiation."
Brittany Steiger, Principal Analyst - Retail & eCommerce
Amazon remains a defining force shaping expectations for retail and ecommerce. Combining scale, innovation and operational excellence, the retail giant sets a pace few competitors can match. The company’s US net sales have more than doubled since 2019, reaching $489.7bn in 2025. This growth continues to outpace the broader ecommerce sector, solidifying its position as a top retail destination.
With a large and loyal shopper base, 72% of consumers rank Amazon among their top-three retailers. A smaller but influential cohort of loyalists (39%) comprise the retailer’s primary shopper base, skewing younger, higher-income and heavily favoring Amazon Prime members.
Amazon’s strengths continue to be reliable convenience, delivery speed and innovation. Prime also remains a cornerstone of Amazon’s ecosystem, outperforming competing paid loyalty programs. At the same time, growing price sensitivity is placing renewed emphasis on Amazon’s price and promotion strategy – particularly as competition intensifies in essentials and grocery, where mass retailers retain strong footholds.
Looking ahead, Amazon is poised to remain the top destination for online shopping. As a leader in AI innovation, the online giant continues to elevate the standard for personalization and discovery, ushering in a new era for ecommerce.
This Report Looks at the Following Areas:
Factors impacting Amazon and other major retailers
The Amazon shopper profile
Competitive landscape and perceptions of the “Big Three Retailers”: Amazon, Walmart and Target
Graph 5: Amazon’s global net sales, by country, at current prices, 2019-25
Service revenues expand as Amazon continues to diversify
Graph 6: Amazon’s global net sales, by retail channel, 2023 and 2025
THE CONSUMER
Amazon shopper profile
Amazon is a retail staple
Who is Amazon’s primary shopper?
Prime drives loyalty to Amazon
Graph 7: Amazon Prime membership, by Amazon shoppers, 2026
Competitive dynamics
Amazon and Walmart are neck-and-neck
Graph 8: select retailers shopped most often, top three ranking, 2026
Competing retailers gain an edge with specific audiences
Amazon outperforms competitors across most metrics
Graph 9: retailer perceptions, 2026
Where Amazon truly differentiates
When it comes to major retailers, consumers are torn between low prices and personal values
Graph 10: select attitudes toward major retailers, by generation, 2026
What do shoppers prefer to buy from Amazon?
Consumers mainly shop Amazon for discretionary purchases
Graph 11: categories consumers prefer to shop from Amazon, 2026
Competitors top Amazon in essential categories
Graph 12: categories consumers prefer to shop at select retailers, 2026
Amazon’s primary shoppers show loyalty across categories
Graph 13: categories consumers prefer to shop at select retailers, by Amazon-primary shoppers, 2026
Consumer electronics are a differentiator for Amazon
Amazon is still betting on grocery
What do shoppers expect from Amazon?
Amazon-primary shoppers prioritize service and convenience
Graph 14: very important factors when choosing where to shop, by Amazon-primary shopper, 2026
Delivering on consumer expectations
Amazon must solidify its value with price-sensitive shoppers
Brick-and-mortar is still a white space for Amazon
THE AMAZON EFFECT: AMAZON’S STRENGTHS & IMPACT AT RETAIL
Prime reinvented the retail loyalty program
Prime outshines competing loyalty programs
Graph 15: paid membership programs, 2026
Graph 16: attitudes toward paid membership, by program, 2026
Prime benefits add significant value and raise expectations for other retailers
Graph 17: attitudes toward Amazon, by Amazon-primary shoppers and Prime members, 2026
Layered rewards increase the value of Prime membership
Graph 18: benefits sought from Amazon Prime membership, 2026
Membership fees are the top barrier, but resistance is largely generational
Graph 19: barriers to Amazon Prime membership – fees, by generation, 2025
Prime Day events are a big draw
Amazon reshaped the promotional calendar
Amazon amplifies promotional strategy
AI will enable more targeted offer messaging
Raising the bar for quick and efficient commerce
Best-in-class fulfillment and delivery
Consumers are increasingly willing to pay for even faster delivery speeds
Graph 20: attitudes toward Amazon, by key demographics, 2026
Amazon’s operational innovations will raise expectations
Personalization and discovery
Amazon shoppers are mostly happy with personalization efforts
Shoppers are willing to share information for better personalization, but data privacy remains paramount
Graph 21: attitudes toward personalization, by key demographics, 2026
Amazon taps AI to deepen personalization
Retail innovation and tech-forward experiences
Innovation is Amazon’s strength, but shopping technology is still more of a “nice-to-have”
Amazon’s primary shoppers are more likely than the average consumer to experiment with shopping technology
Graph 22: interest in online shopping tools, by Amazon-primary shoppers, 2026
Older generations remain slower to adapt
Graph 23: interest in online shopping tools, by generation, 2026
The AI innovation race is underway, but widespread use will be gradual
Graph 24: comfort with Amazon’s ability to use AI, by key demographics, 2026
APPENDIX
The market
Sales data and abbreviations
Amazon net US sales, at current prices, 2019-25
Amazon’s global net sales, by retail channel, 2023 and 2025
Amazon’s global net sales, by category, 2019-25
Amazon’s global net sales, by country, 2019-25
The consumer
Consumer research questions
Consumer research methodology – US
US population by age
US generation groups
Abbreviations
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