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US How Amazon Continues to Raise the Bar Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the How Amazon Continues to Raise the Bar 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

This report will analyze how Amazon has changed the competitive landscape for retailers and other companies through its offerings and strategies. It will examine consumer relationships with Amazon, including purchase frequency, satisfaction with Amazon and interest in Amazon initiatives and attributes. The analysis presented in this Report builds on The Amazon Effect – US, December 2018 and Competing with Amazon – US, June 2018.

What you need to know

Amazon has transformed the retail sector within the US, if not the world. With a market capitalization approaching a trillion dollars, it’s one of the most valuable companies in the world. It’s currently the second largest global retailer, with revenues of $232 billion putting it behind only Walmart. However, its 47% share of US ecommerce sales greatly outperforms that of Walmart, and it also leads in many other areas. It’s the largest online seller of apparel; virtually monopolizes the e-book sector with an 89% market share; and is the fifth largest seller of groceries in the US

Expert analysis from a specialist in the field

Written by Vince DiGirolamo, 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 has raised the bar for retailers in ways big and small. Indeed, more than half of consumers agree that Amazon excels over other companies when it comes to making it easy to find what you want; offering a broad selection of products and brands; and creating an easy to use checkout process. Amazon has even invented its own “holiday.” Yet for companies competing with Amazon, the key issue is not the ways in which Amazon has raised the bar, but rather how it did it – and whether it will continue to hold that advantage going forward Vince DiGirolamo
Director of Retail Research

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • Top Takeaways
            • The issues
              • A self-fulfilling prophecy
                • Figure 1: Perceptions of Amazon shopping process, by key demographics, June 2019
              • The more the merrier
                • Figure 2: Amazon revenue and operating income by segment, FY 2018
              • From clicks back to bricks
                • Figure 3: Interest in in-store grocery shopping innovations, by frequent amazon shopper, June 2019
              • Who’s holding out?
                  • Figure 4: Amazon Shopping Behavior, Prime Membership, by key Demographics, June 2019
                • What it means
                • Amazon Overview – What You Need to Know

                  • Far more than second best
                    • More than just what’s in store
                      • Integration leads to domination
                        • Grabbing grocery market share?
                          • Content leads to commerce
                          • Understanding Amazon

                            • Punching above its weight
                              • Figure 5: Comparison of top five US retailers, 2018
                            • More than just ecommerce
                              • Figure 6: Amazon revenue and operating income by segment, FY 2018
                          • Amazon’s Innovations and Initiatives: Retail

                            • We control the horizontal and the vertical
                              • Anywhere and anytime you want it
                                • Figure 7: Interest in online delivery options, June 2019
                              • From online to IRL
                                  • Figure 8: Amazon Go – July 2019
                              • Amazon’s Innovations and Initiatives: Content

                                • Gift with purchase or Trojan horse?
                                  • Figure 9: Amazon Prime Video – July 2019
                                • A sound strategy
                                  • Figure 10: Smart speaker ownership and purchase interest, by brand, March 2019
                              • The Amazon Shopper – What You Need to Know

                                • Amazon shopping is frequent and growing
                                  • Pleased with Prime
                                    • Shoppers like Amazon’s ease and selection
                                      • Delivery timing, locations rank less well than experience
                                        • Raising the bar and setting the standard
                                        • The Amazon Shopper

                                          • Amazon shopping frequency rising
                                            • Figure 11: Shopping frequency, online in general versus on Amazon, October 2018 and June 2019
                                          • Room to grow
                                            • Figure 12: Shopping frequency, online in general versus on Amazon, by age and household income, June 2019
                                          • Parents the prime purchasers
                                            • Figure 13: Shopping frequency, online in general versus on Amazon, by parental status, June 2019
                                          • Missed opportunity with Asians
                                            • Figure 14: Shopping frequency, online in general versus on Amazon, by race and Hispanic origin, June 2019
                                        • Amazon Prime Membership

                                          • Prime membership on the rise
                                            • Figure 15: Prime membership, by key demographics, October 2018 June 2019
                                          • Older, affluent consumers have longest tenure
                                            • Figure 16: Rate and tenure of Prime membership, by age and income, June 2019
                                          • Rural consumers the most loyal
                                            • Figure 17: Rate and tenure of Prime membership, by area of residence, June 2019
                                          • Satisfaction with Prime is high – and growing
                                            • Figure 18: Satisfaction with Prime membership, October 2018 and June 2019
                                          • Satisfaction levels particularly high for key groups
                                            • Figure 19: Satisfaction with Prime membership, by key demographics, October 2018 and June 2019
                                        • Perceptions of Amazon Shopping Experience

                                          • Consumers find Amazon easy and comprehensive
                                            • Figure 20: Perceptions of Amazon shopping experience, by age and income, June 2019
                                          • Frequent e-shoppers enjoy the Amazon experience
                                            • Figure 21: Perceptions of Amazon shopping experience, by online shopping frequency, June 2019
                                          • Hispanics enjoy visiting Amazon
                                            • Figure 22: Perceptions of Amazon shopping experience, by race and Hispanic origin, June 2019
                                        • Perceptions of Amazon Shopping Process

                                          • Process viewed somewhat less well than experience
                                            • Figure 23: Perceptions of Amazon shopping process, by age and income, June 2019
                                          • More than half of frequent shoppers prefer Amazon processes
                                            • Figure 24: Perceptions of Amazon shopping process, by shopping frequency, June 2019
                                          • Parents appreciate convenience
                                            • Figure 25: Perceptions of Amazon shopping process, by parental status, June 2019
                                          • Locations most important for urban dwellers
                                            • Figure 26: Perceptions of Amazon shopping process, by area of residence, June 2019
                                        • Amazon Shopper Attitudes

                                          • Majority believe Amazon sets the standard for convenience
                                            • Figure 27: Attitudes of Amazon shoppers, October 2018 and June 2019
                                          • Older shoppers more skeptical of Amazon-branded products
                                            • Figure 28: Attitudes of Amazon shoppers, by age and income, June 2019
                                          • Amazon redefines convenience for its frequent shoppers
                                            • Figure 29: Attitudes of Amazon shoppers, by Amazon shopping frequency, June 2019
                                        • eCommerce Interests – What You Need to Know

                                          • Time is of the essence
                                            • Online grocery shopping still in early stages
                                              • Streaming has strong appeal for key audiences
                                              • Use and Interest in eCommerce Innovations

                                                • Consumers want control over delivery timing
                                                  • Figure 30: Interest in delivery innovations, by age and income, June 2019
                                                • Parents prize convenience
                                                  • Figure 31: Interest in delivery innovations, by parental status, June 2019
                                                • Frequent shoppers most open to new types of delivery
                                                  • Figure 32: Interest in delivery innovations, by onilne shopping frequency, June 2019
                                                • Room to improve on packaging
                                                  • Figure 33: Interest in packaging innovations, by key demographics, June 2019
                                              • Use and Interest in Grocery Innovations

                                                • Few doing most shopping online
                                                  • Figure 34: Grocery shopping channels, by age, June 2019
                                                • Young, affluent most open to new store experiences
                                                  • Figure 35: Interest in in-store grocery shopping innovations, by age and income, June 2019
                                                • Frequent online shoppers want to see stores change
                                                  • Figure 36: Interest in in-store grocery shopping innovations, by online shopping frequency, June 2019
                                                • Convenient delivery compelling for online grocery
                                                  • Figure 37: Interest in online grocery shopping innovations, by key demographics, June 2019
                                              • Streaming Content and Services

                                                • Age and income significant drivers of subscribership
                                                    • Figure 38: Streaming video service adoption, by age and income, June 2019
                                                  • Disney+ has highest subscription interest
                                                    • Figure 39: Awareness and interest in streaming video services, June 2019
                                                  • Key target audiences have strong interest in streaming services
                                                    • Figure 40: Awareness and interest in streaming video services, by key demographics, June 2019
                                                  • Content leading driver of subscriptions
                                                    • Figure 41: Reasons for subscribing to streaming video services, June 2019
                                                  • Ad avoidance more important for key audience group
                                                    • Figure 42: Reasons for subscribing to streaming video services, June 2019
                                                • Appendix – Data Sources and Abbreviations

                                                  • Data sources
                                                    • Sales data
                                                      • Consumer survey data
                                                        • Abbreviations and terms
                                                          • Abbreviations