65% of Amazon Customers Plan to Shop; Opportunity for Amazon to Reverse Gen Z Decline
Numerator, a data and tech company serving the market research space, has released new findings on Prime Day’s impact on Amazon CPG market share, as well as shopper sentiment for Prime Day 2022. Overall, Amazon quickly drove significant awareness of Prime Day 2022, with nearly half of consumers aware of Prime Day within eight days of the announcement. And with 53% of US Households as Prime members and two thirds of shoppers planning to shop the sale, Amazon is poised to capture a record-high 20%+ CPG share this Prime Day.
“Consumers are more accustomed to buying their everyday goods online,” said Eric Belcher, CEO, Numerator. “This year on Prime Day, consumers will be looking for deals on essential goods in addition to electronics and gifts. Successful brands will leverage timely consumer data to meet the consumer where they are. With real-time visibility into Prime Day buying behavior, Numerator helps brands and retailers quickly identify and respond to shifting behaviors to drive growth in this inflationary environment.”
Prime Day Impact on Market Share:
- Amazon’s CPG share growth increases every Prime Day. Day-of CPG share grew from 16.2% on Prime Day 2019 to 18.3% on Prime Day 2020 to 19.1% on Prime Day 2021. While growth has recently slowed (+0.8 points from 2020 to 2021 vs. +2.1 points from 2019 to 2020), day-of CPG share is expected to surpass 20% on Prime Day 2022.
- Amazon’s CPG share skyrockets 4-5x on Prime Day every year. While the entire month containing Prime Day sees a modest share boost vs. the month prior, Amazon’s day-of share on Prime Day is on average 4-5x higher than its usual range. In 2021, Amazon’s CPG share was 4.7% in the month before Prime Day, 5.7% the month of Prime Day, and 19.1% on Prime Day itself.
- Prime Day takes share from both smaller retailers and major retailers’ in-store locations. On Prime Day 2021, smaller retailers collectively saw a -10.5 point CPG share decline vs. the month prior. Walmart saw an in-store decline of -2.1 points, followed by Kroger (-1.4 points) and Costco (-1.2 points). Target.com saw a slight share boost of +0.8 points on Prime Day.
- Amazon pulls significant Baby and Household sector share from Walmart. On Prime Day, Amazon sees share increases of +3.8 points in the household sector, and +3.7 points in the baby sector, pulling share most heavily from Walmart (-1.4 points and -1.7 points, respectively).
- Younger generations show the largest Amazon share boost on Prime Day. All generations see a boost in Amazon CPG share surrounding Prime Day, but the trend is most pronounced with Millennials and Gen Z. However, early indications in May and June 2022 show declining share among Gen Z, dropping below both Millennials and Gen X consumers.
Prime Day Shopper Awareness & Intent:
- Almost half of Amazon shoppers are aware of Prime Day 2+ weeks in advance. As of June 24, 47% of Amazon shoppers knew the dates of Prime Day 2022, and more than a quarter (28%) said they were informed on the day Prime Day was announced.
- Prime Day awareness is significantly higher than Walmart+ Weekend. 33% of Walmart.com shoppers said they were aware of the Walmart+ Weekend sale event as it was taking place.
- Outside of the Amazon ecosystem, social media is the biggest driver for Prime Day awareness. While the majority of consumers learn about Prime Day through Amazon’s site, mobile app, or marketing emails (73%), nearly one quarter (22%) said they heard about Prime Day on social media platforms.
- Two-thirds of Amazon shoppers plan to shop Prime Day 2022. Among those who are aware of Prime Day 2022, 65% said they plan to participate in the retail event. Another 30% said they might shop on Prime Day, and 5% do not plan to participate.
- Consumers will use Prime Day to jumpstart back-to-school and holiday shopping. 22% of Prime Day shoppers say they plan to buy gifts for birthdays, anniversaries, and other special occasions; 18% plan to buy gifts for the holiday season; and 10% plan to buy back-to-school items.
- About 1 in 5 consumers are waiting for Prime Day sales for big ticket items. Among those planning to shop on Prime Day, 17% say they plan to buy higher-priced items that they would only purchase on sale.
- Financial concerns are detracting Amazon shoppers from Prime Day. Among those Amazon shoppers who do not plan to participate in Prime Day 2022, the top three reasons cited are a focus on saving money (39%), inflation/rising prices (36%), and lack of sales on specific items (34%).