Amazon Marketplace 2016 Holiday Recap [Infographic]

Matthew Smokowski

Lead PPC Strategist

Embed Our Graphic On Your Website:

As the world’s largest online retailer, Amazon has quickly become a household name. Today, half of all online shopping searches start directly on Amazon. It’s market power now rivals or exceeds that of Walmart. Within five years, ⅕ of the US’s $3.6 trillion retail market will have shifted online. After this holiday season, Amazon is on track to capture two-thirds of this online retail market. Not only have internet users found themselves shopping on Amazon, but they’ve found the platform to be a lucrative entity to sell just about anything.

Online retail sales in the U.S. totaled $9.36 billion from Thanksgiving Day to the Sunday that followed, an increase of over 16% compared to the same period last year. It is estimated that 37% of all online sales during the five-day period were made on Amazon, totaling $4.74 billion in revenue. Amazon captures nearly one in every two dollars that Americans spend online, so it’s no wonder that the company is flourishing.

Benefits of Amazon Prime include free 2-day shipping on over 20 million products, unlimited streaming of movies and TV shows included within the Prime Video library, and the ability to borrow books from the Kindle Owner’s lending Library for a discounted price. Amazon Prime subscribers now outnumber non-member shoppers on Amazon as roughly half of all US households are Amazon Prime Members: An estimated 60 million people.

Not only do prime subscribers outnumber non-members, but they tend to spend more. Prime members spend about $1,200 over a 12 month period on average compared to about $500 for non-members. Data suggests that prime members are materially more loyal whereas they spend more, purchase more, have higher levels of satisfaction and have more intent to spend.
Being the go-to online shopping choice, it’s not surprising that millions of people decided to skip the crowds and lines this year and opted for browsing on Amazon. From music and movie sets to gaming systems and instant cameras, below are some of the products that flew off their electronic shelves this year:

  • Cards Against Humanity  ($25)
  • Sony PlayStation 4 Slim ($269)
  • Amazon Fire Stick with Alexa ($49.99)
  • Fujifilm Instax Instant Film Camera ($59.89)
  • Amazon Echo ($179.99)
  • Echo Dot ($49.99)

The majority of purchases this holiday season were made from Fulfillment by Amazon (FBA) sellers. Amazon shipped 50% more items during the 2016 holiday season than the prior year for third-party vendors. This amount doubled for 2016 overall. Having Amazon pick, pack, ship, and provide customer service for your products could be the golden ticket to helping you expand your business and reach more customers. FBA allows for your products to be eligible for 2-day Prime shipping, which is a feature that Amazon Prime members are most fond of.

The prominent shift to eCommerce has been evident for years now and Amazon has emerged as the true leader. Recent news about various retail store closings across the nation have been at the forefront and many are realizing the massive potential and trying to solidify their own spot in the marketplace. Afterall, FBA sellers are on a steep, steady incline that is showing no immediate sign of plateauing. Contact one of SEMGeek’s Amazon experts today to help you lower ACoS and generate ROI.

About the Author: Matthew Smokowski

Matt is a PPC Strategist for SEMGeeks. He has a background in English and Creative writing and experience managing PPC campaigns for popular local businesses. He excels at creating creative ad copy, landing page content, and progressive PPC strategy. Matt has become the resident Amazon and Instagram Marketing Expert.

Talk With Our Team to learn more about this...

Comments?