CIRP - Amazon Report

CIRP - Amazon Report

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CIRP - Amazon Report
CIRP - Amazon Report
Giving an Echo This Year? Amazon Loyalty Follows…

Giving an Echo This Year? Amazon Loyalty Follows…

Michael Levin and Josh Lowitz's avatar
Michael Levin and Josh Lowitz
Dec 19, 2023
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CIRP - Amazon Report
CIRP - Amazon Report
Giving an Echo This Year? Amazon Loyalty Follows…
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Thinking of giving an Echo smart speaker to a family member or friend this year? They make lovely gifts. They also correlate with dramatically increased Amazon shopping.

Amazon.com’s primary business is retailing and everything they do, even operating Amazon Web Services, supports that effort. Their service and hardware businesses are no exception. For example, members of the Amazon Prime service shop at Amazon much more frequently, leading them to spend around 50% more than customers without a Prime membership. Echo device owners are even better Amazon shoppers.

26% of Amazon customers own an Echo smart speaker. This figure has remained relatively constant for the past few years. In comparison, 73% of Amazon customers have a Prime membership, which has remained relatively constant for the past few years, as well. That super-majority of Prime members means that their shopping behavior dominates the overall averages.

Though few actually use their devices for voice purchasing, Echo ownership boosts Amazon shopping, even more than Prime membership. On average, Echo owners spend $1,800 per year at Amazon, compared to $1,200 per year for Prime members (Chart 1). Echo owners both shop even more frequently at Amazon, and also spend somewhat more per shopping visit, compared to Prime members.

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