To understand the impact of demographics on Amazon, we must understand the Amazon shopper. Kantar Retail, a leading source for consumer research supplies critical data. We know a significant amount about the Amazon shopper profiles using their sampling of 1300 households. This demographic data includes gender, children in household, generation, income, and race.
The Amazon shopper is slightly more male than the average shopper.This is expected as user adoption for online shopping is growing faster amongst men than women overall. Marketers are enthusiastic about the potential sales from this cohort. In fact in a
Business Intelligence survey “40% of men ages 18-to-34 ‘would ideally buy everything online.’"
(Schlossberg, 2016) This is great
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The Amazon shopper is also more likely to have young children in the home.Millennial parents tend to use their phone to purchase goods more often than older hoppers, they tend to browse and research online more often than older shoppers, and 86 percent have used same-day shipping compared with just 67 percent of parents from other generations.
(Smith & Jordan, 2018) These already prevalent millennial behaviors are a driver of Amazon’s success. A greater adoption from younger parents is accretive to Amazon revenues.
Lastly, it is no surprise that high income shoppers are an important demographic for
Amazon. And in fact, Amazon shoppers are more affluent than the average shopper. 82% of Amazon shoppers are middle or high income, as compared to only 75% of average shoppers. Without a doubt a shopper base that is more affluent will have greater spending potential from larger discretionary income. However, in an economy where real household income is lower than in previous generations, this becomes even more imperative. (Potier, 2003)
Clearly Amazon is capitalizing on demographic shifts already taking place over the past few years. Specifically this includes increase in shopping trips by men who are more likely