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Amazon’s relentless fashion rise to continue in 2018 as free shipping, speed and variety prove winne


What drives consumers to shop on Amazon? Free shipping, of course. Not convinced? Well a huge 88% of them are driven by the appeal of not having to pay for delivery, according to a report from marketing firm Epsilon.

But that’s not the only boost that the e-tail giant’s strategy is giving its business. Other key factors that affect why shoppers choose Amazon include its credit offering, the ease of its return policy, the perception that Amazon is a “one stop shop”, and faster deliveries due to the availability of two-day or next-day shipping.

And while many items bought on Amazon are low-price, Epsilon also found that the top 1% of Amazon Prime members spend more than $3,200 annually in an average of 19 transactions. That means an average transaction value of about $171.

Prime really does appear to be a turnover-driver because the top 1% of Amazon shoppers who are not Prime members spend roughly $2,560 in about 17 transactions a year worth an average of $151.

From its own data and a survey of 3,000 consumers, Epsilon created an Amazon customer profile suggesting that the average customer earns more than $100,000, is aged 45-54 and married. More than 80% own their own home, and more than 50% have a net worth of $500,000 or more.

That comes ahead of Amazon’s latest results this week with analysts expecting it to reveal a 37% leap in quarterly sales on Thursday. Annual sales of $175bn would put it on course to hit its $200bn target in the next few years, with fashion and food sales both soaring.

A raft of reports have shown just how well Amazon is doing. In 2017, the e-tailer accounted for around 44% of all US e-tail sales and 4% of total US retail sales, according to marketplace analytics firm One Click Retail.

Amazon Prime sales accounted for 45-50% of all US Holiday 2017 sales, according to GBH Insights. And the CPC Strategy 2018 US Forecast on Apparel Shopping Trends study of 1,500 shoppers, showed 52% buying clothing on the site.

Cowen & Co expects it to sell $28bn worth of apparel this year and CPC said 35% of Millennials consider the Amazon app “essential”, ahead of both Gmail (30%) and Facebook (29%), citing ComScore data.


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