When you have been following the Nationwide Positions weblog, our Forbes articles, or our e book content material over the previous yr, you’ve got seemingly seen us discussing ecommerce and Amazon…rather a lot.
The reason being easy: Client habits has been shifting to Amazon buying for the previous two years, and this development just isn’t going away any time quickly. So, as we settle into 2022, we figured why not offer you some meals for thought on the subject of contemplating Amazon as a brand new channel for rising your online business.
We all know you’ve got heard all the essential information like “Amazon is the world’s largest ecommerce retailer.” So, we’re aiming to avoid generally identified stuff, and as an alternative, digging into one thing meatier so that you can chew on.
Strap in and prepare for 10 information and figures about Amazon you won’t have identified about…till now.
1. The US Loves Amazon Prime
These of us within the US who use the web positively have an affinity for Amazon Prime.
As of June 2020, over 80% of these aged 18-34, practically 70% of these aged 35-54, and 60% of these 55-plus had Prime memberships.
Moreover, by the top of 2022, an estimated 76.6 million individuals within the US could have Amazon Prime—a rise of 10 million from 2019.
2. Prime Members Store Extra
In a survey by Feedvisor, they needed to see if being a Prime Member had any correlation to the frequency of ecommerce buying—and boy, did it.
Evaluating non-members to members, 13% of non-members report shopping for merchandise on-line no less than weekly, whereas practically 50% of Prime Members mentioned they make purchases weekly (if not day by day).
3. It’s Not All About Free Transport
A research from Statista displaying the highest causes that ecommerce prospects use Amazon uncovered way over simply free transport as a driving issue.
In truth, the primary reason prospects want Amazon—raking in 66%—was product availability.
So, as provide chain shortages proceed to impression many retail areas within the US, many have been turning to Amazon to fill within the gaps.
4. SMB’s Rule Amazon
One factor that’s practically unattainable for smaller manufacturers to do is compete with the big-name manufacturers within the retail area.
That is typically one of many drivers for small- and medium-sized companies to create their very own retail area and go direct. However on Amazon, this can be a totally different story. In truth, 60% of gross sales on Amazon have been attributed to small- and medium-sized companies on the platform.
Amazon gives a chance for these SMBs to develop past the partitions of their native geographics and take their merchandise to the plenty.
5. The Pandemic Has Pushed Amazon Development
This can be apparent to some…however to not others. When the pandemic started in 2020, it was an explosive yr of over 32% development for US ecommerce.
The development continued in 2021, including practically one other 10% to this quantity—and we aren’t even speaking about worldwide. That’s for one more article.
However for the reason that pandemic started, Amazon has added over 200 million Prime Members, indicating that this ecommerce purchasing shift just isn’t a “development” that’s going to burn out anytime quickly.
6. Cellular Amazon Procuring Is Big
Discover we mentioned “purchasing” is large. We didn’t say “buying.” Cellular is vital to Amazon’s success for one crucial cause.
Prospects can search and examine anytime—even when they’re perusing in bodily retail areas. They could need to see if pricing is healthier on Amazon or the product they’re on the lookout for could also be out of inventory, so that they examine to see if anybody on Amazon has it.
Round 80% of Amazon looking begins on a cellular machine, however practically 70% of purchases are completed on desktop. So, cellular is influencing buy choices, however our trusty desktops are nonetheless closing the deal.
7. Amazon Attracts Greater Earners
There have been rumblings about Walmart seeking to take a chew out of Amazon’s success, being that as of 2021, Walmart was outpacing the expansion of Amazon by practically 5x.
Amazon nonetheless trumps Walmart in total numbers and customers, however Walmart just isn’t slowing down. Now one consideration just isn’t solely the quantity of consumers on Amazon but in addition the revenue potential.
The common family earnings for Amazon customers is simply shy of 85k, in comparison with Walmart.com’s buyer base the place the family earnings is roughly 76k. So you could need to think about this earnings hole when deciding whether or not or not Amazon is one of the best wager to your merchandise.
8. Amazon Adverts Make an Influence
One of many nice issues about Amazon is that persons are there to buy—or, on the very least, analysis their choices.
As a result of prospects are already primed (see what we did there?) to make a purchase order, utilizing Amazon adverts that can assist you stand out can (and does) make an enormous distinction. Based on Serpwatch, 43% of consumers click on on adverts linking to Amazon merchandise, however not simply on Amazon.
Seventy-six % of consumers famous that they noticed these adverts from a direct Google search. So, Amazon promoting makes a distinction—each on and off the platform.
9. On Amazon, House Is The place the Coronary heart Is
You possibly can promote just about something on Amazon, however this begs the query—what are prospects wanting for on Amazon? Whereas buying has had some wild swings over the previous two years, merchandise for the house are getting the lion’s share of consideration.
By early 2021, outside furnishings gross sales had practically doubled, and merchandise associated to grilling have been up 70%. There has additionally been a large rise in occasion and social gathering provides in addition to Amazon wedding ceremony registry objects.
And it’s not simply in regards to the patrons. Companies offering house and kitchen merchandise account for 40% of all Amazon sellers.
10. Searching for LTV? Amazon’s Obtained That Too
No one can deny that after a buyer outlets on Amazon…they’re hooked. (Effectively, they’ll deny it, however they’d be flawed.)
Amazon has dialed within the person expertise for customers, and about 90% of consumers say they’ll buy on Amazon as a result of they belief the purchasing expertise. It’s estimated that Prime customers spend practically $2,000 yearly on Amazon’s platform, up from round $1,400 in 2019.
So, on the subject of attracting prospects and encouraging repeat purchases, Amazon positively has the shopping for energy.
Your Model on Amazon
That is only a style of all the advantages your model can make the most of on the subject of Amazon. Are there value issues and techniques it’s essential to think about? Completely.
However the query actually comes right down to alternative. Is the chance well worth the return? If completed the best means, we imagine it’s.
Over the previous two years, we have now taken extra manufacturers on Amazon than within the historical past of Nationwide Positions. We’re even increasing this a part of our company to maintain up with demand. So, if you’re attempting to determine if Amazon is the best subsequent step for your online business, join with our group to overview your choices.
You possibly can click on right here to go to our contact web page or e mail us immediately at Advertising and [email protected], and we are able to set you as much as Zoom with our Amazon group.
It’ll be an awesome yr, so no matter alternative you might be contemplating we are able to’t wait that can assist you make it a actuality.