Major retailers (e.g., brick-and-mortar retailers, online-only retailers, and those that are omni-channel) target and service a wide variety of socio-economic segments. With the 2013 holiday shopping season approaching and with Amazon continuing to grow rapidly and appearing frequently in the business news, the Shullman Pulse Fall 2013 Preview Wave surveyed U.S. adults regarding the stores where they have bought goods and services in the past 12 months. The following focuses on the top 10 stores according to consumers’ reporting they made a purchase there in the past 12 months.
Affluent Consumers Continue to Flock to Amazon
Of the 123 stores surveyed, Amazon came in as the #1 store, with almost six in ten of all adults (59%) reporting they have shopped and made a purchase there in the past 12 months. Walmart is tied with Amazon among all adults and surpasses Amazon among those with lower household incomes (less than $75,000 households — 60% of American adults). Among more affluent consumers with higher household incomes who are the target customers of many retailers, Amazon is on top by a wide margin. And when a marketer thinks about the adults in the really higher-income households ($250,000+ or $500,000+ households — the top 3% and top 1% of American adults), Amazon is clearly way out in front. Also notable is there are two on-line-only retailers — Amazon and eBay — among the top 10 according to our survey. And Zappos, one of a number of other Amazon brands not included in our short list of the top 10, is ranked #30 among all adults.
Very High-Income Shoppers See Benefits in Amazon Prime
Less than one third of all adults (29%) who made a purchase at Amazon are enrolled in Amazon Prime, which offers free two-day shipping and other benefits (including a Netflix-like video service) for a $79 annual membership fee. Notably, in the $500,000+ household-income segment, 45% of Amazon shoppers reported they are enrolled in Amazon Prime, which makes it very convenient to make purchases online.
Affluent Amazon Shoppers Shop at Amazon Often
Finally, when probed about their frequency of shopping at Amazon, more than half (60%) of Amazon's total customer base reported they shopped there once a month or more often, including nearly two thirds (64%) of Amazon's customers with household incomes of $500,000 or more. Notably almost one fifth (17%) of the $500,000+ segment buys at Amazon once a week or more often.
Big picture, affluent consumers are flocking to Amazon and it's making itself "sticky" through its Amazon Prime offering. All that said, when will #1 start making a profit?