What you’ll learn
- Amazon’s target market statistics and avenues of growth
- How to make the data actionable for Amazon sellers
- Impact it’s having on Amazon’s algorithm
As Amazon continues to dominate the internet retail and e-commerce landscape, understanding their target market is becoming increasingly important. With various products and services across multiple industries, it can be difficult to discern who Amazon is targeting. In this article, you’ll learn how to assess Amazon’s target market by looking at their product offerings, customer demographics, and marketing strategies.
Some quick Amazon target audience stats to get you in the right direction.
Amazon Sales Statistics:
- Year-over-year change in Amazon sales: 38%
- Percentage of retail sales in the U.S. by Amazon: 38.2%
User Demographics:
- Over 190 million Amazon Prime members
- Average age of Amazon customers and users: 36-43 for both male and female customers
- Percentage of Amazon users who are female: 53%
- Percentage of Amazon users who are male: 47%
User Habits:
- Percentage of Amazon users who have made a purchase in the past 3 months: 81%
- Average number of Amazon customer purchases per user in the past 3 months: 3.3
- Average amount spent per user on Amazon in the past 3 months: $104
Amazon’s Target Market: Uncovering New Opportunities For Sellers
Amazon has broadened its target market beyond traditional categories like age and gender. It’s not just about Amazon Prime subscribers, 2-day fast and free shipping and catering to Amazon consumers anymore.
They are now also considering factors such as income level, shopping habits, lifestyle choices, etc. This means it’s easier than ever to find potential customers on the platform who match your product or service offerings.
- Leverage Amazon’s Target Market Insights: Amazon has a wealth of customer data, including income level, shopping habits, lifestyle preferences, and more. By taking advantage of this data, you can better understand which existing, and potential customers are most likely to buy your product or service.
- Identify Opportunities in Underserved Markets: Amazon’s target market insights can also help you identify potential new markets where your product or service might be a success. Does the platform traditionally underserve certain segments of the population? If so, this could allow you to reach new customers and grow your business.
- Take Advantage of Amazon’s Advertising Platforms: Amazon offers various advertising platforms, from sponsored products to display ads. By taking advantage of these platforms, you can target specific population segments that might be interested in your product or service.
- Track and Measure Results: As you begin to target new segments of the population, it’s important to track and measure the results of your efforts. You can use Amazon’s reporting tools to do this, or you can use third-party analytics tools to gain deeper insights into the performance of your campaigns.
🗣️ Pro Tip: Amazon has so much data. Make use of it and learn to find insight from it.
Exploring The Diversity Of Amazon’s Target Market
Exploring the diversity of Amazon’s target market is a topic most Amazon sellers don’t think about. With so many potential users and customers, it’s important to understand who you should focus your efforts on.
- Amazon target market size: Amazon boasts one of the largest customer bases in the world, having recently reported more than 200 million active users across its various platforms. This massive user base provides sellers with enormous opportunities to reach potential customers.
- Amazon target market demographic: Most of Amazon’s customers are millennials, but a large percentage of older generations also use the platform. Many countries have also embraced Amazon as their go-to online shopping destination, making it a global marketplace.
- Amazon target market interests: Whether you sell products related to technology or fashion or something else entirely, there are buyers out there who share your interests. You can pinpoint exactly which customers are most likely to purchase your product or service through precise targeting and segmentation techniques.
- Amazon target market spending power: With so many users from different backgrounds and with varying disposable income levels, Amazon has created a marketplace where almost anyone can find something within their budget range – from high-end luxury items to everyday essentials.
🗣️ Pro Tip: Consider digging deeper and niching down into a market and target audience further. The profit is in the niches.
Examining The Spending Habits Of Amazon’s Target Market
Time to get into the details and actionable tips.
- Analyze the shopping patterns of users who have previously bought from Amazon. Use Amazon’s analytics tools to study customers’ purchase habits over time to identify trends in spending habits. With so many Amazon Prime members, there is deep data you can access and decipher.
- Analyze the demographics of customers who purchase from Amazon. Look at the age, gender, location, and other characteristics of customers who make purchases on Amazon.
- Monitor changes in customer spending habits over time. Track changes in total spending, average order value, and other key metrics over time to understand how customers’ habits change.
- Monitor external sources that provide insights on consumer trends and spending habits. Track industry news, consumer surveys, and other sources to stay up to date on changes in consumer spending habits.
- Conduct consumer surveys to gain further insights. Ask customers questions about their Amazon purchases, such as why they purchased a particular item, how they found it, and what they think of Amazon’s services.
- Analyze competitors’ customers. Compare customers’ spending habits from Amazon to those who buy from other online retailers.
Analyzing The Impact Of Amazon Target Market On Product Categories
Which product categories have grown the fastest on Amazon in the past 3 years by Amazon customers?
- Groceries
- Household items
Books - Electronics
- Apparel
- Beauty products
- Toys
Most of these aren’t surprising considering what the world went through from 2019 to 2022.
According to data from 2022, Amazon’s overall global market share of online shoppers has grown by 33.5%.
Groceries, household items, and books were the top 3 fastest growing product categories, with respective growths of 37%, 36%, and 33%.
Electronics saw a growth of 32%, apparel saw a growth of 27%, beauty products saw a growth of 24%, and toys saw a growth of 18%.
This data indicates that Amazon’s target market is largely composed of people looking for everyday items, such as groceries and household items, as well as people looking for entertainment and educational items, such as books and toys while cooped up in their homes during lockdown or fear of catching covid.
This is definitely going to change, and you can see the difference in outdoor categories starting to pick up momentum. Amazon customers are already trying to catch up for lost time.
While the growth in product categories is important, it’s also important to see things in context to stay ahead of the market.
The Impact Of Amazon’s Algorithms On Brand Loyalty
Here are some key points about how algorithmic targeting impacts Amazon’s brand loyalty:
• Algorithms enable Amazon to offer a tailored customer experience
• Targeting can help increase customer retention as well as attract new customers
• Tracking customer behavior across platforms helps build trust with their target audience
• Increased trust leads to long-term brand loyalty for Amazon.
The power of algorithmic targeting has been key in helping Amazon cultivate loyal customers who continue returning for their products and services. As such, it is an essential part of their business strategy and should not be overlooked when assessing how the company attracts and retains its target market.
The key point is that Amazon will do what is in their best interest. When trying to analyze and dig into Amazon’s algorithm, try to put yourself in their shoes. Amazon’s ultimate goal is more sales on their platform, higher conversions, more ad money.
Put all of this together and you can see what the trend is going to be for algorithm updates in their SERPs, listings, ads and product visibility.
🗣️ Pro Tip: Never forget that Amazon and Amazon sellers have conflicting interests.
Final words
It is clear that Amazon’s target market is complex and ever-evolving. Being the number 1 online retailer means they have a huge incentive to capture more of the market and to keep finding ways to broaden their target market and audience base.
By exploring the diversity of their target market, you can gain an edge in the competitive ecommerce landscape. Understanding Amazon’s target market’s demographics and spending habits can help sellers optimize product categories and build brand loyalty. Use Amazon’s algorithmic capabilities to assess the target market and identify sources of competitive advantage and increase your customer retention
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