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The Power or Ubiquity of Amazon

A whopping 60% of U.S. adults have purchased via Amazon in the past three months,…

  • September 30, 2017

A whopping 60% of U.S. adults have purchased via Amazon in the past three months, according to research from market intelligence firm Packaged Facts. Maybe you were one of them?

The house that Jeff Bezos built is now threatening retail giant Walmart’s position with innovations ranging from Amazon Prime to Amazon Visa to Kindle apps to Fire TV and more.

Packaged Facts reassures that, among major retailers, Walmart maintains its place as the purchase destination of choice — but Amazon is breathing down its neck.

If usage growth rates for each retailer stay the same, Amazon will pass Walmart in just one more year, forecasts Packaged Facts.

“Amazon utilizes numerous strategies to broaden its reach into U.S. homes and wallets, including segmenting subscriptions, broadening and deepening retail categories, entering social media, and leveraging digital assistants,” says David Sprinkle, research director for Packaged Facts.

In the report, Packaged Facts estimates that more than 80 million U.S. adults are members of the company’s Amazon Prime subscription service.

But beyond Amazon Prime membership, consumers spend money via Amazon in a variety of ways: for example, tens of millions of American adults use Amazon Kindle e-readers and/or use its mobile app.

Amazon’s reach also extends to consumers’ wallets, with tens of millions of adults claiming to have an Amazon Visa card and a similar number having its store-only card.

In addition, Echo and Alexa are tapped by 20 million. Likewise almost 19 million have used Subscribe & Save. While penetration of Amazon Fire TV lags that of Roku, it is ahead of Google Chromecast and Apple TV.

With 25% usage penetration, Pandora holds a wide lead among streaming music services, with all competitors under 10% penetration. Amazon Prime Music is fifth, ahead of Google Pay and behind Apple Music.

As for which U.S. consumers are most likely to shop via Amazon, the report pinpoints demographic drivers including 25-44s with $100K+ HH incomes, who are 48% more likely than the average Amazon user to have ordered from it in the past three months; urban dwellers with $100K+ HH incomes (40% more likely); and married/partnered users with $100K+ HH (40% more likely).

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