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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Amazon: Creating an Economy market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Amazon is a business that should need no introduction in the UK market. It is the outright leader in the online retail market, holding a 23% share, and is now the fifth-largest retailer, with estimated UK GTV revenue of £13.7 billion in 2018, and largest non-food retailer, behind only the big four grocery multiples. It is a retailer that has driven and rode best the winds of change in the past decade and one that, despite the fact that the vast majority (88%) of UK consumers have shopped with in the last year, has significant room for further growth.


However, Amazon is far more than simply a retailer. Ignore its significant cloud computing business, it is also a major player in the media streaming and consumer electronics markets. Indeed half (50%) of UK households now contain an Amazon-produced device, with the Echo (21%) now its most popular product. However, many businesses have diversified operations, but Amazon is unique, at least among the retail sector, in that it has been successful in creating an ecosystem where its customers are not simply shoppers, but equally device owners and streaming subscribers. Amazon Prime, to which 44% of UK consumers now have access, is the glue which holds this together with Prime.

Expert analysis from a specialist in the field

Written by Nick Carroll, a leading analyst in the Retail sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Amazon is the largest non-food retailer in the UK, but in truth it is far more than a retailer; it is also a leading video and streaming provider, a significant consumer electronics producer and much more. The unprecedented success of this not even 30 year old business has come from not only creating success in multiple disciplines with distinct consumer bases, but also creating an ecosystem in which its customers buy into multiple aspects of its business Nick Carroll
Associate Director - Retail

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • Amazon: The business
            • The ‘trillion’ dollar business
              • Figure 1: Amazon, total net sales, 2014-19
            • The largest non-food retailer in the UK
              • Figure 2: Top 10 leading UK retailers as a % of all retail sales (ex-VAT, ex-fuel), 2018
            • Amazon’s adspend reaches record highs in 2019
              • Figure 3: Total above-the-line, online display and direct mail advertising expenditure by Amazon, 2015-19
            • Amazon’s brand image in a strong position
              • Figure 4: Key metrics for selected brands, November 2019
            • Amazon continues to innovate, from smart rings to Premier League football
              • Figure 5: Amazon Echo Loop, September 2019
            • Amazon: The consumer
              • Nearly nine in 10 shop with Amazon
                • Figure 6: Frequency of Amazon shopping, October 2019
              • Nearly half have access to Amazon Prime
                • Figure 7: Amazon Prime membership, October 2019
              • Younger shoppers far more likely to shop via mobile
                • Figure 8: Devices used to shop with Amazon in the past year, by age, October 2019
              • Hard-copy media still the most popular purchase
                • Figure 9: Products purchased via Amazon in the past year, October 2018 and 2019
              • Delivery perks are key but Prime Video is increasingly important
                • Figure 10: Amazon Prime services regularly used, by access to Amazon Prime, October 2019
              • Half of UK households have an Amazon device
                • Figure 11: Ownership of Amazon devices, October 2019
              • Reviews crucial to purchasing on Amazon
                • Figure 12: Behaviours of Amazon shoppers, October 2019
              • Marketplace is a differentiator but some question the quality
                • Figure 13: Attitudes towards Amazon Marketplace, October 2019
              • What we think
              • Issues and Insights

                • Amazon: the ecosystem
                  • The facts
                    • The implications
                      • Nike ditches Amazon, a one-off or a significant trend?
                        • The facts
                          • The implications
                            • Amazon: setting the foundations for ‘frictionless retail’
                              • The facts
                                • The implications
                                • Amazon: Structure and Innovations – What You Need to Know

                                  • The ‘trillion’ dollar business
                                    • The largest non-food retailer in the UK
                                      • Amazon’s adspend reaches record highs in 2019
                                        • Amazon’s brand image in a strong position
                                          • Amazon continues to innovate, from smart rings to Premier League football
                                          • Amazon: An Overview

                                            • The ‘trillion’ dollar business
                                              • Figure 14: Amazon, total net sales, 2014-19
                                            • Consumer-facing operations still the majority of Amazon’s business
                                              • Figure 15: Amazon net sales breakdown, 2018
                                            • AWS is becoming the driver of investment
                                              • Figure 16: Breakdown of Amazon net sales, as a percentage, by business segment, 2016-18
                                            • Amazon turns the profit screw
                                              • Figure 17: Amazon profits, 2014-18
                                              • Figure 18: Amazon, net cash provided by (used in) operating activities), 2014-18
                                          • Amazon: In the UK Market

                                            • The UK accounts for just 6% of Amazon’s revenue
                                              • Figure 19: Geographic breakdown of Amazon revenues, 2016-18
                                            • The dominant online market leader
                                              • Figure 20: Online retailing market shares, 2018
                                              • Figure 21: Amazon reported sales and gross transactional revenues as a % of all online retail sales, 2016-19
                                            • Electricals still the key category for the business
                                              • Figure 22: Estimated Amazon UK sales, by product, 2018
                                            • How big is Amazon in the context of the wider sector?
                                              • Figure 23: Top 10 leading UK retailers as a % of all retail sales (ex-VAT, ex-fuel), 2018
                                          • Amazon: Brand Research

                                              • Amazon: brand overview
                                                • Brand map
                                                  • Figure 24: Attitudes towards and usage of selected brands, November 2019
                                                • Key brand metrics
                                                  • Figure 25: Key metrics for selected brands, November 2019
                                                • Brand attitudes: Amazon, logically, stands out as providing a great online service
                                                  • Figure 26: Attitudes, by brand, November 2019
                                                • Brand personality: Amazon has cultivated a ‘fun’ brand image
                                                  • Figure 27: Brand personality – macro image, November 2019
                                                • Reliability key to the appeal of the Amazon brand
                                                  • Figure 28: Brand personality – micro image, November 2019
                                                • Brand analysis
                                                  • Figure 29: User profile of Amazon, November 2019
                                              • Amazon: Launch Activity and Innovation

                                                  • Refreshing the Amazon device line-up
                                                    • Figure 30: Amazon Smart Oven, September 2019
                                                    • Figure 31: Amazon Echo Loop, September 2019
                                                    • Figure 32: Amazon Echo Auto, September 2019
                                                    • Figure 33: Amazon Kids edition, October 2019
                                                  • It’s not all about consumer electronics…
                                                    • Figure 34: Amazon Belei, November 2019
                                                  • Expanding the streaming line up
                                                    • Refining delivery, collection and payment
                                                      • Prove it (sustainable)
                                                        • Celebrating its two biggest days
                                                          • Figure 35: Amazon Home of Black Friday 2019 pop-up, November 2019
                                                      • Amazon: Advertising and Marketing Activity

                                                        • Amazon’s adspend hits record highs in 2019
                                                          • Figure 36: Total above-the-line, online display and direct mail advertising expenditure by Amazon, 2015-19
                                                        • Growth in spending on Prime and services
                                                          • Figure 37: Total above-the-line, online display and direct mail advertising expenditure by Amazon, by advertising category, 2015-19
                                                        • The majority is spent on TV
                                                            • Figure 38: Total above-the-line, online display and direct mail advertising expenditure by Amazon, by media type, 2015-19
                                                          • Nielsen Ad Intel coverage
                                                          • The Consumer – What You Need to Know

                                                            • Nearly nine in 10 shop with Amazon
                                                              • Nearly half have access to Amazon Prime
                                                                • Younger shoppers far more likely to shop via mobile
                                                                  • Hard-copy media still the most popular purchase
                                                                    • Delivery perks are key but Prime Video is increasingly important
                                                                      • Half of UK households have an Amazon device
                                                                        • Reviews crucial to purchasing on Amazon
                                                                          • Marketplace is a differentiator but some question the quality
                                                                          • Who Shops and How Frequently with Amazon?

                                                                            • Almost nine in 10 shop with Amazon
                                                                              • Half of Amazon shoppers use the retailer once a month or less
                                                                                • Figure 39: Frequency of Amazon shopping, October 2019
                                                                              • 25-34s most frequent Amazon shoppers
                                                                                • Figure 40: Frequency of Amazon shopping, by age, October 2019
                                                                              • More have increased their level of Amazon use than decreased it
                                                                                • Figure 41: Changes in Amazon use in the past year, October 2019
                                                                            • Amazon Prime Membership

                                                                              • Nearly half have access to Amazon Prime
                                                                                • Figure 42: Amazon Prime membership, October 2019
                                                                              • Younger consumers more likely to have access to Prime
                                                                                • Figure 43: Amazon Prime membership, by age, October 2019
                                                                              • A quarter have joined Prime in the past year
                                                                                • Figure 44: Length of Amazon prime membership, October 2019
                                                                            • Devices Used to Shop with Amazon

                                                                              • Most shop via laptop/desktop
                                                                                • Figure 45: Devices used to shop with Amazon in the past year, October 2019
                                                                              • Younger shoppers far more likely to shop via mobile
                                                                                • Figure 46: Devices used to shop with Amazon in the past year, by age, October 2019
                                                                              • Younger shoppers more likely to shop via multiple devices
                                                                                • Figure 47: Repertoire of devices used to shop with Amazon in the past year, by age, October 2019
                                                                            • What They Buy via Amazon

                                                                              • Hard-copy media still the most popular purchase via Amazon
                                                                                • Figure 48: Products purchased via Amazon in the past year, October 2018 and 2019
                                                                              • Prime members more likely to buy across all categories…
                                                                                • Figure 49: Purchases made via Amazon in the past year, by Prime membership status, October 2019
                                                                              • …and have a wider repertoire of purchasing
                                                                                • Figure 50: Repertoire of categories shopped via Amazon in the past year, by Prime membership status, October 2019
                                                                            • Amazon Services Used

                                                                              • Delivery still key but Prime Video is growing in importance
                                                                                  • Figure 51: Amazon Prime services regularly used, by access to Amazon Prime, October 2019
                                                                                • So big it has its own day
                                                                                  • Figure 52: Purchasing during Amazon Prime Day 2019, October 2019
                                                                                  • Figure 53: Attitudes towards Amazon sales events, October 2019
                                                                                • Will more live sport encourage more Prime Video sign-ups?
                                                                                    • Figure 54: Attitudes towards sport on Prime Video, by gender and age, October 2019
                                                                                  • Most use multiple services
                                                                                    • Figure 55: Repertoire of Prime services used, by Prime services regularly used, October 2019
                                                                                • Ownership of Amazon Devices

                                                                                  • Half of UK households have an Amazon device
                                                                                      • Figure 56: Ownership of Amazon devices, October 2019
                                                                                    • Prime members significantly more likely to own Amazon devices
                                                                                        • Figure 57: Ownership of Amazon devices, by membership of Amazon Prime, October 2019
                                                                                      • The majority purchased their products via Amazon
                                                                                        • Figure 58: Where Amazon products were purchased, October 2019
                                                                                    • Behaviours of Amazon Shoppers

                                                                                      • For most Amazon is the first port of call online
                                                                                        • Figure 59: Behaviours of Amazon shoppers, October 2019
                                                                                      • Amazon’s influence is not limited to online
                                                                                        • Figure 60: Behaviours of Amazon shoppers, by age, October 2019
                                                                                    • Attitudes towards Marketplace

                                                                                      • Over a third think Marketplace is what makes Amazon unique
                                                                                        • Figure 61: Attitudes towards Amazon Marketplace, October 2019
                                                                                      • One in five Amazon shoppers believe they have received counterfeit products
                                                                                        • Figure 62: Attitudes towards shopping with Amazon, by age, October 2019
                                                                                      • Half of 16-34s say it is hard to trust the quality of Marketplace products
                                                                                          • Figure 63: Agreement with attitudes towards Amazon Marketplace, by age, October 2019
                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                        • Data sources
                                                                                          • VAT
                                                                                            • Financial definitions
                                                                                              • Abbreviations
                                                                                                • Consumer research methodology

                                                                                                This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                • Market

                                                                                                  Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                • Consumer

                                                                                                  Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                • Brand/Company

                                                                                                  Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                • Data

                                                                                                  Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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