Relatively Small Transactions and Lots of Them

Last week we determined that Amazon - and especially Amazon Prime - has encouraged shopping patterns that (ironically) mimic a convenience store. Shoppers order just what they need at any given moment and enjoy the genuine convenience of reliable home delivery. 

To make that convenience model work, a retailer needs a high volume of transactions. That is one reason why traditional convenience stores have leaned into coffee and sodas. Amazon sells everything, so no particular item or category can drive frequency by itself. Instead, Amazon needs to assume a primary shopping position for its customers, so the infinite variety of “convenient” purchases adds up. 

Most Amazon customers shop there at least monthly, with over three-quarters shopping “once a month” or more often, and 18% ordering once a week or more often (Chart 1).