Market research firm Numerator has released new Prime Day 2020 findings that, coupled with survey data, indicate Amazon will lead the holiday shopping season in terms of household penetration in the U.S.
Big box retailers have historically led in household penetration over the five days from Thanksgiving through Cyber Monday. In an analysis of non-grocery purchases during the five-day period in 2019, Walmart led with overall household penetration of 39.2%— stores 36.7%, online 4.8%— with Amazon following at 29.6%. In 2020, Numerator expects Amazon to close Walmart’s 10-point lead, in part because of the success of Prime Day 2020.
Just over one in three U.S. households shopped Amazon on Prime Day 2020, up from 23% during the 2019 occasion. Survey data of verified Prime Day purchasers indicates that 31% did so for the first time. Although average spend per order at $54.64 in 2020 was down from $58.91 in 2019, consumers laid out $7.4 billion during Prime Day 2020 versus $4.5 billion in 2019.
Shoppers placed more than 135 million Amazon orders on Prime Day, up from 76 million in 2019. In addition, more than three in five Prime Day buyers, 61.8%, placed two or more orders, up from 57.6% in 2019.
Amazon has momentum, but it also made efforts to ensure its gift shopping predominance, Numerator noted. For example, the company dedicated 25% of its advertising budget to gift cards compared to only 1.6% in 2019. Gift card reloads and new Amazon gift cards landed on the list of the top six most-purchased items on Prime Day 2020. As it happened, Prime Day gift buyers were more valuable customers than the average Prime Day shopper to the retailer. They spent an average of $286.79, almost twice what the typical Prime Day buyer laid out, and placed an average of five separate orders throughout Prime Day.
The momentum may be important for Amazon, Numerator asserted, as a survey of verified Prime Day buyers shows that nine in 10 plan to shop on Amazon again before the actual holidays.