SlideShare a Scribd company logo
1 of 19
Download to read offline
Amazon Retail Performance
        Report
        April - June 2012
            July 2012
Contents
Summary ............................................................................................................................................................ 3
Methodology ...................................................................................................................................................... 4
About eDataSource ............................................................................................................................................ 4
Disclaimer ........................................................................................................................................................... 5


Amazon Retail Site Market Growth .................................................................................................................. 6
Amazon Retail Site Performance by Category .................................................................................................. 7
      -     Performance by Category (trailing three months) ................................................................................ 7
      -     Monthly Performance by Category ....................................................................................................... 8
      -     Kindle Analysis ....................................................................................................................................... 9
Amazon vs. 3rd Party Analysis .......................................................................................................................... 10
      -     Performance (trailing three months) .................................................................................................. 10
      -     Monthly Performance ......................................................................................................................... 12
Prime Membership Analysis ............................................................................................................................ 13
Shipping Methods Analysis.............................................................................................................................. 15
      -     Overview (trailing three months) ........................................................................................................ 15
      -     Monthly View by Prime Membership.................................................................................................. 16




Appendix 1: Product Category List.................................................................................................................... 18
Appendix 2: Shipping Category List .................................................................................................................. 19




eDataSource                                                  Proprietary & Confidential                                                                          2
Summary
Amazon.com, the world’s largest online retailer, has forever changed the face of retailing. Once exclusively
a book seller, Amazon now offers an inventory that ranges from apparel to wireless phones and everything
in between. They have mainstreamed a once niche consumer electronic category — eReaders — with their
incredibly successful line of Kindle products. In the process, Amazon has become one of the top sellers of
digital media – eBooks, mobile apps, music MP3s and movies – in the world

This eDataSource report focuses on the nuts and bolts of the online consumer sales of this multinational
giant. Focusing on the April-June 2012 time period, we’ve estimated performance metrics about Amazon’s
recent sales activity, and have sought to answer:

    -   How do overall sales vary from month-to-month?
    -   What is the average order value overall, and by sales category?
    -   What is the % sales breakdown and average unit retail (AUR) by category?
    -   Which Kindle models are the most popular?
    -   What % of purchases are sold directly by Amazon compared to third-party sales?
    -   How does the purchasing behavior between Prime members and regular customers differ?
    -   What shipping methods are utilized and is there a difference of order size between methods? Do
        Prime members always use free two-day shipping?


Please note: this report focuses on U.S. sales only and excludes digital media sales and rental data.




        For more information on eDataSource’s products and services, including
        customized eCommerce monitoring reports and data, please contact us at
        sales@edatasource.com, or via phone at 800-761-6580.

        Visit our website at www.edatasource.com



eDataSource                             Proprietary & Confidential                                      3
Methodology
eDataSource utilizes its proprietary email analytics capability and panel of ~800,000 consumers to provide
unique insights into consumer purchasing trends by examining online purchase confirmations delivered by
email.

eDataSource has conducted detailed analyses of the sales and subscription rates at Amazon.com,
Walmart.com, iTunes, Barnes & Noble, Netflix, Staples, Office Depot, Gilt, Ideeli and others using
anonymized data from more than 580,000 online purchase and subscription confirmations over the past six
months.

This Amazon Sales report is based on the analysis of over 30,000 anonymized Amazon receipts from
eDataSource’s proprietary panel during April-June 2012. This data represents purchases of nearly 50,000
items.

Important note: digital content sales and rentals (i.e. Kindle Edition books, movies, MP3s, mobile apps)
have been excluded from this report. Amazon’s digital content sales and rentals are available separately
from eDataSource.

The primary analyses contained in this report include Amazon’s retail (physical goods) web site sales trends,
performance by category, Amazon vs. third party sales, prime membership trends and shipping method
trends. Approximately 85% of products identified were categorized into ten groups based on Amazon’s
published store directory list.

eDataSource has defined a prime member as a customer who has made an order with free two-day
shipping.

Items sold by Amazon.com, Amazon.com LLC, Amazon Digital Service, Inc. and Amazon Export Sales are
considered “as sold by Amazon”, other items are “sold by third party.”

For shipping method analysis, we’ve limited our analysis to five major categories -- standard, free super
saver, two-day shipping, one-day shipping and expedited shipping. Amazon international shipping and
some special methods such as no-rush delivery and release-date delivery have been excluded.

About eDataSource
Founded in 2003, eDataSource (www.edatasource.com) is the worldwide leader in competitive intelligence
for email, social media and ecommerce activity, based on active monitoring of more than 800,000
consumer inboxes and 9,000 brands. The company provides strategic analytics products and services for
online marketers, publishers and their service providers.

For more information on eDataSource’s products and services, including customized eCommerce
monitoring reports and data, please contact us at sales@edatasource.com, or via phone at 800-761-6580.



eDataSource                            Proprietary & Confidential                                           4
Disclaimer
All material contained in this report is property of eDataSource, Inc. (“eDataSource”) unless otherwise
indicated. This report is proprietary, confidential and provided for the exclusive use of the recipient. No
portion may be directly or indirectly copied, published, reproduced, modified, displayed, sold, transmitted,
or redistributed in any medium without the express prior written consent of eDataSource. Any
unauthorized use of the content of this report is strictly prohibited.

This report is intended for informational purposes only. eDataSource provides the information and data
presented herein on an “as is,” “as available” basis, without representations or warranties of any kind
whatsoever, expressed or implied. All statements and figures in this report are eDataSource estimates. The
information in this report may be incomplete and may not contain all material information relating to the
subject matter of the report. eDataSource does not provide any information or make any representation or
warranty on behalf of the companies that are the subject of this report and this report has not been
authorized or approved by said companies.

This report reflects the results of our research as of the date of this report. Our research results are subject
to change at any time as new or additional data and information is received and analyzed. eDataSource
undertakes no duty to update this report, or to provide supplemental information to any client receiving
this report, absent a specific arrangement to the contrary between eDataSource and individual clients,
which arrangement may specify different frequency and depth of analysis and update commitments based
on levels of service and fees selected by clients.

This report is provided solely to clients of eDataSource, each of whom assume all risk and liability with
regard to any use or application of the data included herein. In no event shall eDataSource or its officers,
directors, affiliates, shareholders or employees be liable for any damages that are directly or indirectly
related to this report.




eDataSource                              Proprietary & Confidential                                         5
Amazon Retail Site Market Growth


                 1.10                                                                            $60.00

                                                        $49.27
                                                                               $47.31            $50.00




                                                                                                             Average Order Value ($)
                              $46.15
                 1.05
                                                                                                 $40.00
         Index




                 1.00                                                                            $30.00


                                                                                                 $20.00
                 0.95
                                                                                                 $10.00


                 0.90                                                                            $0.00
                               April                     May                    June



                                  Average Order Value            Sales Index    Orders Index




                                           Monthly                             Monthly          Average
                        Sales Index                         Orders Index
     Month                                 Growth                              Growth          Order Value
      April                0.95             -2.8%                 0.98          -1.7%            $46.15
      May                  1.05              9.9%                 1.01          2.9%             $49.27
      June                 1.00             -5.1%                 1.00          -1.2%            $47.31




Amazon’s saw a considerable jump – nearly 10% -- in sales from April to May. The number of orders and
average order value rose in tandem over the same period, increasing nearly 3% and 6.8%, respectively.
Average order value hit a high of $49.27 in May, up from a quarterly low of $46.15 in April.




eDataSource                                Proprietary & Confidential                                                                  6
Amazon Retail Site Performance by Category
Performance by Category

                              3.6%           Percentage of Sales ($) by Category
                       3.7%
                                                                                            Apparel, Shoes & Jewelry
                          2.8%                               0.8%
                                                                                            Automotive
                          6.1%                      8.8%
                                                                                            Books
                                                                                            Electronics & Computers
                                                           14.6%                            Grocery, Health & Beauty
                                     8.4%
                                                                                            Home, Garden & Tools
                                     8.5%                                                   Movies, Music & Games
                                                                                            Office Product
                                                                                            Sports
                                                     42.9%
                                                                                            Toys, Kids & Baby


                                                        * Sales ($) does not include shipping cost, tax or order discount

                              2.5%          Percentage of Units Sold by Category
                                                    4.2% 6.3% 0.6%                         Apparel, Shoes & Jewelry
                                     2.7%
                                                                                           Automotive
                                                                                           Books
                                                                                           Electronics & Computers
                                            10.7%                                          Grocery, Health & Beauty
                                                                    27.4%                  Home, Garden & Tools
                                        7.0%
                                                                                           Movies, Music & Games
                                                                                           Office Product
                                            12.0%
                                                                                           Sports
                                                                                           Toys, Kids & Baby
                                                       26.6%




                                                      Average Unit Retail
         Apparel, Shoes & Jewelry
                       Automotive
                             Books
          Electronics & Computers
         Grocery, Health & Beauty
            Home, Garden & Tools
           Movies, Music & Games
                    Office Product
                            Sports
                 Toys, Kids & Baby
                                 $0.00              $10.00            $20.00      $30.00           $40.00          $50.00



Nearly 43% of Amazon sales came from Electronics, and AUR in excess of $42 in this category. In
comparison, media categories – Books, Movies, Music and Games -- averaged below $15 per unit. By units
sold, Amazon is still primarily a book seller, with over a quarter of unit sales (27.4%) coming from books.
Electronics & computers nearly matched book sales, representing 26.6% of all unit sales for the period.



eDataSource                                    Proprietary & Confidential                                                   7
Monthly Performance by Category

                                        Percentage of Sales ($)                           Percentage of Unit Sold
         Category
                               April            May               June            April               May            June
Apparel, Shoes & Jewelry       7.6%            10.1%              8.4%            5.5%                7.1%           6.4%
Automotive                     0.8%             0.8%              0.8%            0.6%                0.5%           0.6%
Books                         14.7%            14.5%              14.6%           27.2%               27.9%         27.0%
Electronics & Computers       44.0%            42.9%              41.7%           27.7%               25.4%         26.6%
Grocery, Health & Beauty       8.1%             8.3%              9.0%            11.2%               12.5%         12.4%
Home, Garden & Tools           8.6%             7.7%              9.0%            7.4%                6.5%           7.1%
Movies, Music & Games          6.1%             6.4%              5.9%            11.1%               11.1%          9.8%
Office Product                 2.9%             2.5%              3.1%            2.9%                2.5%           2.8%
Sports                         3.3%             3.7%              4.0%            2.6%                2.6%           2.4%
Toys, Kids & Baby              3.9%             3.2%              3.6%            3.8%                3.9%           4.9%
                                                            *Sales ($) does not include shipping cost, tax or order discount

                            Growth from previous           Growth from previous
                                                                                                  Average Unit Retail
         Category              month (Sales $)                month (Unit Sold)
                           April    May      June         April    May        June            April           May      June
Apparel, Shoes & Jewelry   3.2%        49.3%   -22.2%     5.1%       32.3%       -9.0%       $34.59       $39.03      $33.35
Automotive                 21.0%       8.7%    -12.2%    10.8%      -22.0%       39.1%       $33.85       $47.15      $29.78
Books                      26.0%       10.9%    -6.3%    25.2%       5.4%        -3.5%       $13.41       $14.10      $13.70
Electronics & Computers    12.3%       9.8%     -9.6%    21.8%       -5.8%       4.6%        $39.49       $46.01      $39.78
Grocery, Health & Beauty   6.6%        15.4%    1.0%     16.8%       14.8%       -1.2%       $18.00       $18.09      $18.49
Home, Garden & Tools       14.7%       0.2%     9.4%     14.5%       -9.2%       8.7%        $28.94       $31.94      $32.15
Movies, Music & Games      -0.3%       18.0%   -14.2%     8.9%       2.7%       -12.2%       $13.56       $15.58      $15.24
Office Product             -20.1%      -4.7%   15.9%     35.3%      -10.6%       9.1%        $24.75       $26.40      $28.06
Sports                     -3.1%       25.1%    0.5%      1.7%       1.4%        -6.8%       $31.84       $39.28      $42.32
Toys, Kids & Baby          54.8%       -7.7%    2.3%     18.6%       4.7%        26.0%       $25.96       $22.88      $18.57
                                                            * Sales ($) does not include shipping cost, tax or order discount



Apparel, Shoes and Jewelry tallied the largest monthly category jump rising nearly 50% from April to May.
Sports, Grocery/Health and Beauty and Movies, Music & Games all increased more than 15% over the same
period, to lead the exceptionally strong month of May.


Apparel, Shoes and Jewelry gave back some of the growth, losing over 22% in the following month (May to
June).




eDataSource                              Proprietary & Confidential                                                    8
Kindle Analysis

                                         Percentage of Total Kindle Sales

                                      5.7% 1.5%
                              5.9%                                      Kindle Fire
                                                                        Kindle
                                                                        Kindle Touch
                                 7.3%
                                                                        Kindle Touch 3G
                              11.0%                                     Kindle Keyboard 3G
                                                                        Kindle DX
                                                   68.5%




                                         Percentage of Kindle Units Sold

                                          0.6%
                             6.2%                                        Kindle Fire
                                        6.2%
                                                                         Kindle

                                                                         Kindle Touch
                             11.1%
                                                                         Kindle Touch 3G

                                                    54.3%                Kindle Keyboard 3G

                              21.6%                                      Kindle DX




                                 Units Sold and Sales Percentage of Kindle Products

                                                      Kindle     Kindle Touch             Kindle
                       Kindle Fire       Kindle                                                      Kindle DX
                                                      Touch           3G               Keyboard 3G
 % of Total Sales        68.5%           11.0%         7.3%          5.9%                  5.7%        1.5%
 % of Unit Sold          54.3%           21.6%        11.1%            6.2%                6.2%        0.6%



The Kindle Fire – the single best-selling product on Amazon – netted the most sales of the Kindle product
line in both sales dollars (68.5%) and number of units sold (54.3%) for the quarter. The entry-level, lowest-
priced Kindle was a distant second tallying 11% of Kindle sales representing 21.6% of all Kindle units sold.
The largest, most-expensive unit – the Kindle DX, boasting a 9.7” screen and a $379 price tag – represents
less than 2% of product sales.




eDataSource                               Proprietary & Confidential                                             9
Amazon vs. 3rd Party

Performance


           Percentage of Total Sales Amt $                              Percentage of Unit Sold




                                             3rd Party               38.8%
           45.8%                                                                                       3rd Party
                                             Amazon                                                    Amazon
                                54.2%                                                   61.2%




                                                   Average Unit Retail
     Apparel, Shoes & Jewelry
                   Automotive
                       Books
     Electronics & Computers
     Grocery, Health & Beauty
       Home, Garden & Tools
      Movies, Music & Games
               Office Product
                       Sports
            Toys, Kids & Baby

                            $0.00   $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00
                                                      Amazon      3rd Party
          *Amazon: Include Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC




   While third party sellers on the Amazon platform comprised the majority of sales for the quarter – both
   in total sales (54.2%) and, more significantly, in the number of units sold (61.2%) – Amazon’s average
   unit retail exceeds third parties in 8 of 10 primary shopping categories.




eDataSource                                Proprietary & Confidential                                              10
Percentage of Sales $ and Unit Sold by Amazon
          Apparel, Shoes & Jewelry
                        Automotive
                              Books
           Electronics & Computers
          Grocery, Health & Beauty
             Home, Garden & Tools
            Movies, Music & Games
                     Office Product
                             Sports
                  Toys, Kids & Baby

                                  0.0%    10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

                                                          % of Sales ($)   % of Unit Sold
     *Amazon: Include Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC
     * Sales ($) does not include shipping cost, tax or orderdiscount


Amazon is the majority seller in the following categories – Automotive, Books, Home & Garden, Sports and
Media (Movies, Music & Games).




eDataSource                                Proprietary & Confidential                                         11
Monthly Performance

            % of Sales $              % of Unit Sold                              Average Unit Retail
100.0%
                                                             $40.00
 80.0%
         55.7% 54.9% 52.0%          61.7% 61.1% 60.8%        $30.00
 60.0%
                                                             $20.00
 40.0%
                                                             $10.00
 20.0%   44.3% 45.1% 48.0%          38.3% 38.9% 39.2%
                                                               $0.00
  0.0%
                                                                              April             May               June
          April May June          April May June
                                                                           AUR by Amazon          AUR by 3rd Party
                 Amazon       3rd Party


                     % of Sales $            % of Unit Sold
                                                                       AUR by Amazon               AUR by 3rd Party
                     by Amazon                by Amazon
April                  44.3%                     38.3%                       $28.38                      $22.17
May                    45.1%                     38.9%                       $31.24                      $24.26
June                   48.0%                     39.2%                       $30.78                      $21.48

                                   % of Sales $ Sold by Amazon                            % of Unit Sold by Amazon
         Category
                               April           May           June                     April          May          June
Apparel, Shoes & Jewelry       49.2%          38.8%         43.6%                     36.5%         35.7%        35.6%
Automotive                     72.5%          90.1%         84.0%                     76.8%         79.7%        88.8%
Books                          62.7%          65.4%         65.2%                     59.2%         60.2%        58.6%
Electronics & Computers        40.7%          43.3%         46.9%                     21.7%         21.2%        21.6%
Grocery, Health & Beauty       36.7%          40.7%         38.8%                     33.8%         35.4%        39.1%
Home, Garden & Tools           71.6%          68.2%         76.0%                     66.4%         64.2%        65.0%
Movies, Music & Games          53.9%          52.9%         57.6%                     44.5%         46.8%        47.7%
Office Product                 40.9%          49.6%         42.2%                     40.5%         47.6%        61.0%
Sports                         82.5%          70.2%         82.4%                     82.3%         76.1%        77.3%
Toys, Kids & Baby              49.5%          43.1%         45.0%                     38.2%         34.8%        34.4%
                                                                 * Sales ($) does not include shipping cost, tax or order discount
                                                                  Average Unit Retail
                                        April                           May                                   June
         Category
                             Amazon          3rd Party          Amazon      3rd Party              Amazon         3rd Party
 Apparel, Shoes & Jewelry     $46.60          $27.68             $42.46       $37.12                $40.84         $29.21
 Automotive                   $31.94          $40.20             $53.32       $22.95                $28.18         $42.44
 Books                        $14.21          $12.25             $15.34       $12.25                $15.24         $11.53
 Electronics & Computers      $74.12          $29.92             $93.81       $33.13                $86.65         $26.91
 Grocery, Health & Beauty     $19.54          $17.21             $20.76       $16.62                $18.35         $18.58
 Home, Garden & Tools         $31.24          $24.40             $33.97       $28.32                $37.60         $22.01
 Movies, Music & Games        $16.42          $11.27             $17.59       $13.81                $18.40         $12.35
 Office Product               $24.97          $24.60             $27.54       $25.36                $19.40         $41.61
 Sports                       $31.93          $31.40             $36.27       $48.84                $45.11         $32.78
 Toys, Kids & Baby            $33.68          $21.20             $28.35       $19.96                $24.29         $15.56
                             *Amazon: Includes Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC



eDataSource                               Proprietary & Confidential                                                        12
Prime Membership Analysis
                              Comparison of Prime Members and Regular Customers
                                            April                            May                            June
                                     Prime        Regular           Prime         Regular          Prime            Regular
                                    Member      Customer           Member        Customer         Member           Customer
Avg. Order Value                    $49.23        $44.81           $50.37         $48.76          $47.42            $47.25
Avg. Items per Order                  1.66         1.56              1.66          1.53             1.60             1.59
Avg. # of Orders per Customer         4.02         2.13              4.09          2.15             4.12             2.13
Avg. Spent $ per Customer           $197.97       $95.39           $205.90        $104.71         $195.52           $100.57



           Average Spent $ per Customer                                          Average Order Value
$250.00                                                 $60.00

$200.00                                                 $50.00
                                                        $40.00
$150.00
                                                        $30.00
$100.00
                                                        $20.00
 $50.00                                                 $10.00
  $0.00                                                     $0.00
              April        May             June                          April              May              June
               Prime Member      Regular Customer                        Prime Member         Regular Customer



          Average # of Orders per Customer                                    Average Items per Order
5.00                                                        2.00

4.00                                                        1.50
3.00
                                                            1.00
2.00
1.00                                                        0.50
0.00
                                                            0.00
           April           May              June
                                                                         April              May              June
            Prime Member         Regular Customer                             Prime Member        Regular Customer




   While prime customer spending and items per order does not significantly eclipse regular customers, the
   average dollars spent and number of orders are both approximately double that of a non-prime shopper.




eDataSource                                Proprietary & Confidential                                                   13
Percentage Contribution and Monthly Growth by Prime Member

                                             Percentage Contribution              Growth from previous month
                                         April        May            June         April         May     June
 % of Prime Member                      18.8%        19.8%           19.3%        0.3%          1.0%    -0.5%
 % of Orders by Prime Member            30.4%        31.9%           31.7%        -0.9%         1.6%    -0.3%
 % of Total Sales by Prime Member       32.4%        32.6%           31.7%        0.4%          0.2%    -0.9%



                                Percentage of Contribution by Prime Member
             100.0%
              90.0%                                 April      May         June

              80.0%
              70.0%
              60.0%
              50.0%
              40.0%                                                                32.4% 32.6% 31.7%
                                                     30.4% 31.9% 31.7%
              30.0%
                        18.8% 19.8% 19.3%
              20.0%
              10.0%
               0.0%
                            # of Customers                  Total Orders                  Total Sales




Prime membership and contribution to sales held relatively steady through the second quarter. Prime
members represent approximately 19% of the Amazon customer base, and are heavy spenders,
approaching nearly a third of overall sales.




eDataSource                              Proprietary & Confidential                                             14
Shipping Method Analysis

Overview


                                            % of Orders by Shipping Methods
               100.0%
                90.0%
                80.0%
                              66.9%
                70.0%
                60.0%
                50.0%
                40.0%
                30.0%                             19.9%
                20.0%                                            9.3%
                10.0%                                                                2.0%
                                                                                                       1.9%
                 0.0%
                             Standard         Two-day       Free Super Saver        One-day        Expedited
                             Shipping         Shipping          Shipping            Shipping        Shipping




                 Average Order Value                                              Average Shipping Cost
 $140.00                                                      $14.00
                                        $127.59                                                          $11.78
 $120.00                                                      $12.00                                               $11.18
 $100.00                      $79.72                          $10.00
  $80.00                                           $66.98      $8.00
                    $54.61
  $60.00                                                       $6.00
           $36.36                                                         $4.25
  $40.00                                                       $4.00
  $20.00                                                       $2.00                  $1.13
                                                                                               $0.00
   $0.00                                                       $0.00
           Standard Two-day Free Super One-day Expedited                 Standard    Two-day Free Super One-day Expedited
           Shipping Shipping   Saver   Shipping Shipping                 Shipping    Shipping   Saver   Shipping Shipping
                             Shipping                                                         Shipping




 Major Shipping Method                        % of Orders              Average Order Value        Average Shipping Cost
 Standard Shipping                                 66.9%                       $36.36                         $4.25
 Two-day Shipping                                  19.9%                       $54.61                         $1.13
 Free Super Saver Shipping                         9.3%                        $79.72                         $0.00
 One-day Shipping                                  2.0%                        $127.59                        $11.78
 Expedited Shipping                                1.9%                        $66.98                         $11.18

                                                                            See appendix for shipping categorization detail.


Standard shipping significantly exceeds all other options accounting for nearly 67% of all orders. The
costliest orders travel fastest, and are more expensive to ship. One-day shipping charges account for over
9% of the average order value in this category.


eDataSource                                  Proprietary & Confidential                                                     15
Monthly View of Shipping Methods by Prime Membership

                                  Percentage of Orders by Shipping Method

                                         April                        May                             June
  Major Shipping Method
                                 Prime           Regular    Prime            Regular          Prime           Regular
 Standard Shipping               36.3%            80.0%     36.1%             80.7%           38.4%            81.1%
 Two-day Shipping                59.2%            1.8%      59.7%               2.3%          57.8%             2.2%
 Free Super Saver Shipping        0.7%           14.4%       0.2%             13.0%            0.4%            12.6%
 One-day Shipping                 2.9%            1.5%       3.0%               1.5%           2.8%             1.7%
 Expedited Shipping               1.0%            2.4%       0.9%               2.6%           0.6%             2.4%



                                   Percentage of Order by Shipping Methods
   100.0%
              0.7%                       0.2%                       0.4%
    90.0%             14.4%                       13.0%                      12.6%
    80.0%             1.8%                        2.3%                       2.2%
    70.0%                                                                                  Expedited Shipping
              59.2%                      59.7%                   57.8%
    60.0%                                                                                  One-day Shipping
    50.0%
                                                                             81.1%         Free Super Saver Shipping
    40.0%             80.0%                       80.7%
    30.0%                                                                                  Two-day Shipping
    20.0%     36.3%                      36.1%                   38.4%
                                                                                           Standard Shipping
    10.0%
     0.0%
              Prime   Regular            Prime    Regular        Prime       Regular
                       April                       May                   June



                                                                    See appendix for shipping categorization detail.



Prime customers overwhelmingly take advantage of their free two-day shipping benefit by selecting this option
nearly 60% of the time compared to only ~2% selection of two day shipping by non-prime customers. Non-prime
shoppers use Standard Shipping 80% of the time.




eDataSource                              Proprietary & Confidential                                               16
Average Order Value by Shipping Methods

                                             April                             May                        June
 Major Shipping Methods
                                    Prime            Regular         Prime             Regular     Prime            Regular
Standard Shipping                   $41.16           $35.50          $35.53            $37.38      $33.58           $36.04
Two-day Shipping                    $51.43           $73.59          $53.99            $92.12      $51.31            $85.63
Free Super Saver Shipping           $87.21           $74.31          $137.63           $82.45      $65.41            $82.60
One-day Shipping                    $78.11           $102.12         $108.80          $192.53     $136.36           $139.40
Expedited Shipping                  $44.07           $86.19          $107.86           $60.51      $70.55            $50.90



                                        Average Order Value by Shipping Methods
  $250.00

  $200.00
                                                                                                 Standard Shipping
  $150.00
                                                                                                 Two-day Shipping
  $100.00                                                                                        Free Super Saver Shipping

   $50.00                                                                                        One-day Shipping
                                                                                                 Expedited Shipping
    $0.00
              Prime           Regular       Prime          Regular     Prime          Regular
                      April                          May                       June




                                              Average Shipping Cost per Order

                                             April                             May                          June
 Major Shipping Methods
                                   Prime             Regular         Prime            Regular     Prime            Regular
Standard Shipping                  $3.91             $4.43           $3.45             $4.46      $3.25             $4.33
Two-day Shipping                   $0.00             $13.78          $0.00            $13.60      $0.00            $14.70
Free Super Saver Shipping          $0.00             $0.00           $0.00             $0.00      $0.00             $0.00
One-day Shipping                   $5.27             $16.28          $6.35            $17.35      $7.82            $15.46
Expedited Shipping                 $11.21            $12.50          $11.75           $11.63     $10.64             $9.30




eDataSource                                    Proprietary & Confidential                                                    17
Appendix: Product Category List

Category                Major Category             Category                   Major Category
Apparel                 Apparel, Shoes & Jewelry   DVD                        Movies, Music & Games
Jewelry                 Apparel, Shoes & Jewelry   Audio CD                   Movies, Music & Games
Watch                   Apparel, Shoes & Jewelry   Video Game                 Movies, Music & Games
Eyewear                 Apparel, Shoes & Jewelry   Blu-ray                    Movies, Music & Games
Shoes                   Apparel, Shoes & Jewelry   VHS Tape                   Movies, Music & Games
Sports Apparel          Apparel, Shoes & Jewelry   Audio Cassette             Movies, Music & Games
Paperback               Books                      Sheet music                Movies, Music & Games
Hardcover               Books                      MP3 CD                     Movies, Music & Games
Mass Market Paperback   Books                      Electronics                Electronics & Computers
Spiral-bound            Books                      Wireless Phone Accessory   Electronics & Computers
Perfect Paperback       Books                      Personal Computers         Electronics & Computers
Unknown Binding         Books                      Accessory                  Electronics & Computers
Board book              Books                      CD-ROM                     Electronics & Computers
Pamphlet                Books                      Camera                     Electronics & Computers
Magazine                Books                      Software                   Electronics & Computers
Library Binding         Books                      DVD-ROM                    Electronics & Computers
Comic                   Books                      Computer Game              Electronics & Computers
Hardcover-spiral        Books                      Unlocked Phone             Electronics & Computers
Kitchen                 Home, Garden & Tools       Toy                        Toys, Kids & Baby
Home Improvement        Home, Garden & Tools       Baby Product               Toys, Kids & Baby
Patio                   Home, Garden & Tools       Game                       Toys, Kids & Baby
Hardware                Home, Garden & Tools       Health and Beauty          Grocery, Health & Beauty
Housewares              Home, Garden & Tools       Grocery                    Grocery, Health & Beauty
Office Product          Office Product             Automotive                 Automotive
Sports                  Sports




                          Reference: http://www.amazon.com/gp/site-directory/ref=sa_menu_fullstore


eDataSource                         Proprietary & Confidential                                      18
Appendix: Shipping Category List


Shipping Method                                                             Category
standard shipping                                                           Standard
standard                                                                    Standard
expedited shipping                                                          Expedited shipping
expedited                                                                   Expedited shipping
two-day shipping                                                            Two-day shipping
free super saver shipping                                                   Free super saver shipping
one-day shipping                                                            One-day shipping
expedited international shipping                                            Not Included
Amazonglobal priority shipping                                              Not Included
Saturday delivery                                                           Not Included
no-rush delivery                                                            Not Included
priority shipping                                                           Not Included
local express delivery                                                      Not Included
priority international courier                                              Not Included
release-date delivery                                                       Not Included
Amazonglobal expedited shipping                                             Not Included
standard delivery: carrier will contact you for scheduling an appointment   Not Included
scheduled delivery                                                          Not Included
standard international shipping                                             Not Included




eDataSource                               Proprietary & Confidential                                    19

More Related Content

Similar to eDataSource Amazon Retail Performance Q212

eDatasource Netflix Insight May-July 2012
eDatasource Netflix Insight May-July 2012eDatasource Netflix Insight May-July 2012
eDatasource Netflix Insight May-July 2012Vivastream
 
Avelo_BigData_Whitepaper
Avelo_BigData_WhitepaperAvelo_BigData_Whitepaper
Avelo_BigData_WhitepaperMark Pearce
 
Bluekai Little Blue Book
Bluekai Little Blue BookBluekai Little Blue Book
Bluekai Little Blue Bookwhatismarketing
 
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Lora Cecere
 
Relation of Big Data and E-Commerce
Relation of Big Data and E-CommerceRelation of Big Data and E-Commerce
Relation of Big Data and E-CommerceAnkita Tiwari
 
Customer Personality Analysis — Part 1.pdf
Customer Personality Analysis — Part 1.pdfCustomer Personality Analysis — Part 1.pdf
Customer Personality Analysis — Part 1.pdfssuser33ba021
 
Benefits of a data warehouse presentation by Being topper
Benefits of a data warehouse presentation by Being topperBenefits of a data warehouse presentation by Being topper
Benefits of a data warehouse presentation by Being topperBeing Topper
 
How ALEX AND ANI & Elizabeth Arden Focus on the Customer Experience
How ALEX AND ANI & Elizabeth Arden Focus on the Customer ExperienceHow ALEX AND ANI & Elizabeth Arden Focus on the Customer Experience
How ALEX AND ANI & Elizabeth Arden Focus on the Customer ExperienceSalesforce Marketing Cloud
 
Explicato Company Overview
Explicato Company OverviewExplicato Company Overview
Explicato Company OverviewGeorge Yankov
 
BRIDGEi2i Whitepaper - The Science of Customer Experience Management
BRIDGEi2i Whitepaper - The Science of Customer Experience ManagementBRIDGEi2i Whitepaper - The Science of Customer Experience Management
BRIDGEi2i Whitepaper - The Science of Customer Experience ManagementBRIDGEi2i Analytics Solutions
 
Data Analytics for E-Commerce: Driving Growth with Expert Training
Data Analytics for E-Commerce: Driving Growth with Expert TrainingData Analytics for E-Commerce: Driving Growth with Expert Training
Data Analytics for E-Commerce: Driving Growth with Expert TrainingUncodemy
 
Customer Experience Improvement: Finding the Right Data Strategy
Customer Experience Improvement: Finding the Right Data StrategyCustomer Experience Improvement: Finding the Right Data Strategy
Customer Experience Improvement: Finding the Right Data Strategysuitecx
 
Data Science Use Cases in Retail & Healthcare Industries.pdf
Data Science Use Cases in Retail & Healthcare Industries.pdfData Science Use Cases in Retail & Healthcare Industries.pdf
Data Science Use Cases in Retail & Healthcare Industries.pdfKaty Slemon
 
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...Lora Cecere
 
ValiDeck Slide Deck
ValiDeck Slide DeckValiDeck Slide Deck
ValiDeck Slide DeckAlok Narula
 
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docx
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docxACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docx
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docxbartholomeocoombs
 

Similar to eDataSource Amazon Retail Performance Q212 (20)

eDatasource Netflix Insight May-July 2012
eDatasource Netflix Insight May-July 2012eDatasource Netflix Insight May-July 2012
eDatasource Netflix Insight May-July 2012
 
Avelo_BigData_Whitepaper
Avelo_BigData_WhitepaperAvelo_BigData_Whitepaper
Avelo_BigData_Whitepaper
 
Bluekai Little Blue Book
Bluekai Little Blue BookBluekai Little Blue Book
Bluekai Little Blue Book
 
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013
 
Sas business analytics
Sas   business analyticsSas   business analytics
Sas business analytics
 
Relation of Big Data and E-Commerce
Relation of Big Data and E-CommerceRelation of Big Data and E-Commerce
Relation of Big Data and E-Commerce
 
Customer Personality Analysis — Part 1.pdf
Customer Personality Analysis — Part 1.pdfCustomer Personality Analysis — Part 1.pdf
Customer Personality Analysis — Part 1.pdf
 
Benefits of a data warehouse presentation by Being topper
Benefits of a data warehouse presentation by Being topperBenefits of a data warehouse presentation by Being topper
Benefits of a data warehouse presentation by Being topper
 
How ALEX AND ANI & Elizabeth Arden Focus on the Customer Experience
How ALEX AND ANI & Elizabeth Arden Focus on the Customer ExperienceHow ALEX AND ANI & Elizabeth Arden Focus on the Customer Experience
How ALEX AND ANI & Elizabeth Arden Focus on the Customer Experience
 
Explicato Company Overview
Explicato Company OverviewExplicato Company Overview
Explicato Company Overview
 
Dat analytics all verticals
Dat analytics all verticalsDat analytics all verticals
Dat analytics all verticals
 
BRIDGEi2i Whitepaper - The Science of Customer Experience Management
BRIDGEi2i Whitepaper - The Science of Customer Experience ManagementBRIDGEi2i Whitepaper - The Science of Customer Experience Management
BRIDGEi2i Whitepaper - The Science of Customer Experience Management
 
Data Analytics for E-Commerce: Driving Growth with Expert Training
Data Analytics for E-Commerce: Driving Growth with Expert TrainingData Analytics for E-Commerce: Driving Growth with Expert Training
Data Analytics for E-Commerce: Driving Growth with Expert Training
 
Customer Experience Improvement: Finding the Right Data Strategy
Customer Experience Improvement: Finding the Right Data StrategyCustomer Experience Improvement: Finding the Right Data Strategy
Customer Experience Improvement: Finding the Right Data Strategy
 
Sony 2
Sony 2Sony 2
Sony 2
 
Data Science Use Cases in Retail & Healthcare Industries.pdf
Data Science Use Cases in Retail & Healthcare Industries.pdfData Science Use Cases in Retail & Healthcare Industries.pdf
Data Science Use Cases in Retail & Healthcare Industries.pdf
 
Analytics in E-commerce
Analytics in E-commerceAnalytics in E-commerce
Analytics in E-commerce
 
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...
 
ValiDeck Slide Deck
ValiDeck Slide DeckValiDeck Slide Deck
ValiDeck Slide Deck
 
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docx
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docxACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docx
ACC201 (MyEducator) Course Project - OverviewFor your Course Pro.docx
 

More from Vivastream

Exchange Solutions Datasheet_Ecommerce
Exchange Solutions Datasheet_EcommerceExchange Solutions Datasheet_Ecommerce
Exchange Solutions Datasheet_EcommerceVivastream
 
Exchange Solutions Datasheet_Customer Engagement Roadmap
Exchange Solutions Datasheet_Customer Engagement RoadmapExchange Solutions Datasheet_Customer Engagement Roadmap
Exchange Solutions Datasheet_Customer Engagement RoadmapVivastream
 
Vivastream Poster
Vivastream PosterVivastream Poster
Vivastream PosterVivastream
 
Vivastream Poster
Vivastream PosterVivastream Poster
Vivastream PosterVivastream
 
Breaking Up is Hard to Do: Small Businesses’ Love Affair with Checks
Breaking Up is Hard to Do: Small Businesses’ Love Affair with ChecksBreaking Up is Hard to Do: Small Businesses’ Love Affair with Checks
Breaking Up is Hard to Do: Small Businesses’ Love Affair with ChecksVivastream
 
EY Smart Commerce Report
EY Smart Commerce ReportEY Smart Commerce Report
EY Smart Commerce ReportVivastream
 
EY Global Consumer Banking Survey 2014
EY Global Consumer Banking Survey 2014EY Global Consumer Banking Survey 2014
EY Global Consumer Banking Survey 2014Vivastream
 
EY Global Consumer Banking Survey
EY Global Consumer Banking SurveyEY Global Consumer Banking Survey
EY Global Consumer Banking SurveyVivastream
 
Automation for RDC and Mobile
Automation for RDC and MobileAutomation for RDC and Mobile
Automation for RDC and MobileVivastream
 
Healthcare Payments Automation Center
Healthcare Payments Automation CenterHealthcare Payments Automation Center
Healthcare Payments Automation CenterVivastream
 
Next Generation Recognition Solutions
Next Generation Recognition SolutionsNext Generation Recognition Solutions
Next Generation Recognition SolutionsVivastream
 
Automation Services
Automation ServicesAutomation Services
Automation ServicesVivastream
 
Company Overview
Company OverviewCompany Overview
Company OverviewVivastream
 

More from Vivastream (20)

Exchange Solutions Datasheet_Ecommerce
Exchange Solutions Datasheet_EcommerceExchange Solutions Datasheet_Ecommerce
Exchange Solutions Datasheet_Ecommerce
 
Exchange Solutions Datasheet_Customer Engagement Roadmap
Exchange Solutions Datasheet_Customer Engagement RoadmapExchange Solutions Datasheet_Customer Engagement Roadmap
Exchange Solutions Datasheet_Customer Engagement Roadmap
 
Test
TestTest
Test
 
Tcap
TcapTcap
Tcap
 
SQA
SQASQA
SQA
 
Jeeva jessf
Jeeva jessfJeeva jessf
Jeeva jessf
 
Vivastream Poster
Vivastream PosterVivastream Poster
Vivastream Poster
 
Vivastream Poster
Vivastream PosterVivastream Poster
Vivastream Poster
 
APEX
APEXAPEX
APEX
 
Breaking Up is Hard to Do: Small Businesses’ Love Affair with Checks
Breaking Up is Hard to Do: Small Businesses’ Love Affair with ChecksBreaking Up is Hard to Do: Small Businesses’ Love Affair with Checks
Breaking Up is Hard to Do: Small Businesses’ Love Affair with Checks
 
EY Smart Commerce Report
EY Smart Commerce ReportEY Smart Commerce Report
EY Smart Commerce Report
 
EY Global Consumer Banking Survey 2014
EY Global Consumer Banking Survey 2014EY Global Consumer Banking Survey 2014
EY Global Consumer Banking Survey 2014
 
EY Global Consumer Banking Survey
EY Global Consumer Banking SurveyEY Global Consumer Banking Survey
EY Global Consumer Banking Survey
 
Serano
SeranoSerano
Serano
 
Accura XV
Accura XVAccura XV
Accura XV
 
Automation for RDC and Mobile
Automation for RDC and MobileAutomation for RDC and Mobile
Automation for RDC and Mobile
 
Healthcare Payments Automation Center
Healthcare Payments Automation CenterHealthcare Payments Automation Center
Healthcare Payments Automation Center
 
Next Generation Recognition Solutions
Next Generation Recognition SolutionsNext Generation Recognition Solutions
Next Generation Recognition Solutions
 
Automation Services
Automation ServicesAutomation Services
Automation Services
 
Company Overview
Company OverviewCompany Overview
Company Overview
 

eDataSource Amazon Retail Performance Q212

  • 1. Amazon Retail Performance Report April - June 2012 July 2012
  • 2. Contents Summary ............................................................................................................................................................ 3 Methodology ...................................................................................................................................................... 4 About eDataSource ............................................................................................................................................ 4 Disclaimer ........................................................................................................................................................... 5 Amazon Retail Site Market Growth .................................................................................................................. 6 Amazon Retail Site Performance by Category .................................................................................................. 7 - Performance by Category (trailing three months) ................................................................................ 7 - Monthly Performance by Category ....................................................................................................... 8 - Kindle Analysis ....................................................................................................................................... 9 Amazon vs. 3rd Party Analysis .......................................................................................................................... 10 - Performance (trailing three months) .................................................................................................. 10 - Monthly Performance ......................................................................................................................... 12 Prime Membership Analysis ............................................................................................................................ 13 Shipping Methods Analysis.............................................................................................................................. 15 - Overview (trailing three months) ........................................................................................................ 15 - Monthly View by Prime Membership.................................................................................................. 16 Appendix 1: Product Category List.................................................................................................................... 18 Appendix 2: Shipping Category List .................................................................................................................. 19 eDataSource Proprietary & Confidential 2
  • 3. Summary Amazon.com, the world’s largest online retailer, has forever changed the face of retailing. Once exclusively a book seller, Amazon now offers an inventory that ranges from apparel to wireless phones and everything in between. They have mainstreamed a once niche consumer electronic category — eReaders — with their incredibly successful line of Kindle products. In the process, Amazon has become one of the top sellers of digital media – eBooks, mobile apps, music MP3s and movies – in the world This eDataSource report focuses on the nuts and bolts of the online consumer sales of this multinational giant. Focusing on the April-June 2012 time period, we’ve estimated performance metrics about Amazon’s recent sales activity, and have sought to answer: - How do overall sales vary from month-to-month? - What is the average order value overall, and by sales category? - What is the % sales breakdown and average unit retail (AUR) by category? - Which Kindle models are the most popular? - What % of purchases are sold directly by Amazon compared to third-party sales? - How does the purchasing behavior between Prime members and regular customers differ? - What shipping methods are utilized and is there a difference of order size between methods? Do Prime members always use free two-day shipping? Please note: this report focuses on U.S. sales only and excludes digital media sales and rental data. For more information on eDataSource’s products and services, including customized eCommerce monitoring reports and data, please contact us at sales@edatasource.com, or via phone at 800-761-6580. Visit our website at www.edatasource.com eDataSource Proprietary & Confidential 3
  • 4. Methodology eDataSource utilizes its proprietary email analytics capability and panel of ~800,000 consumers to provide unique insights into consumer purchasing trends by examining online purchase confirmations delivered by email. eDataSource has conducted detailed analyses of the sales and subscription rates at Amazon.com, Walmart.com, iTunes, Barnes & Noble, Netflix, Staples, Office Depot, Gilt, Ideeli and others using anonymized data from more than 580,000 online purchase and subscription confirmations over the past six months. This Amazon Sales report is based on the analysis of over 30,000 anonymized Amazon receipts from eDataSource’s proprietary panel during April-June 2012. This data represents purchases of nearly 50,000 items. Important note: digital content sales and rentals (i.e. Kindle Edition books, movies, MP3s, mobile apps) have been excluded from this report. Amazon’s digital content sales and rentals are available separately from eDataSource. The primary analyses contained in this report include Amazon’s retail (physical goods) web site sales trends, performance by category, Amazon vs. third party sales, prime membership trends and shipping method trends. Approximately 85% of products identified were categorized into ten groups based on Amazon’s published store directory list. eDataSource has defined a prime member as a customer who has made an order with free two-day shipping. Items sold by Amazon.com, Amazon.com LLC, Amazon Digital Service, Inc. and Amazon Export Sales are considered “as sold by Amazon”, other items are “sold by third party.” For shipping method analysis, we’ve limited our analysis to five major categories -- standard, free super saver, two-day shipping, one-day shipping and expedited shipping. Amazon international shipping and some special methods such as no-rush delivery and release-date delivery have been excluded. About eDataSource Founded in 2003, eDataSource (www.edatasource.com) is the worldwide leader in competitive intelligence for email, social media and ecommerce activity, based on active monitoring of more than 800,000 consumer inboxes and 9,000 brands. The company provides strategic analytics products and services for online marketers, publishers and their service providers. For more information on eDataSource’s products and services, including customized eCommerce monitoring reports and data, please contact us at sales@edatasource.com, or via phone at 800-761-6580. eDataSource Proprietary & Confidential 4
  • 5. Disclaimer All material contained in this report is property of eDataSource, Inc. (“eDataSource”) unless otherwise indicated. This report is proprietary, confidential and provided for the exclusive use of the recipient. No portion may be directly or indirectly copied, published, reproduced, modified, displayed, sold, transmitted, or redistributed in any medium without the express prior written consent of eDataSource. Any unauthorized use of the content of this report is strictly prohibited. This report is intended for informational purposes only. eDataSource provides the information and data presented herein on an “as is,” “as available” basis, without representations or warranties of any kind whatsoever, expressed or implied. All statements and figures in this report are eDataSource estimates. The information in this report may be incomplete and may not contain all material information relating to the subject matter of the report. eDataSource does not provide any information or make any representation or warranty on behalf of the companies that are the subject of this report and this report has not been authorized or approved by said companies. This report reflects the results of our research as of the date of this report. Our research results are subject to change at any time as new or additional data and information is received and analyzed. eDataSource undertakes no duty to update this report, or to provide supplemental information to any client receiving this report, absent a specific arrangement to the contrary between eDataSource and individual clients, which arrangement may specify different frequency and depth of analysis and update commitments based on levels of service and fees selected by clients. This report is provided solely to clients of eDataSource, each of whom assume all risk and liability with regard to any use or application of the data included herein. In no event shall eDataSource or its officers, directors, affiliates, shareholders or employees be liable for any damages that are directly or indirectly related to this report. eDataSource Proprietary & Confidential 5
  • 6. Amazon Retail Site Market Growth 1.10 $60.00 $49.27 $47.31 $50.00 Average Order Value ($) $46.15 1.05 $40.00 Index 1.00 $30.00 $20.00 0.95 $10.00 0.90 $0.00 April May June Average Order Value Sales Index Orders Index Monthly Monthly Average Sales Index Orders Index Month Growth Growth Order Value April 0.95 -2.8% 0.98 -1.7% $46.15 May 1.05 9.9% 1.01 2.9% $49.27 June 1.00 -5.1% 1.00 -1.2% $47.31 Amazon’s saw a considerable jump – nearly 10% -- in sales from April to May. The number of orders and average order value rose in tandem over the same period, increasing nearly 3% and 6.8%, respectively. Average order value hit a high of $49.27 in May, up from a quarterly low of $46.15 in April. eDataSource Proprietary & Confidential 6
  • 7. Amazon Retail Site Performance by Category Performance by Category 3.6% Percentage of Sales ($) by Category 3.7% Apparel, Shoes & Jewelry 2.8% 0.8% Automotive 6.1% 8.8% Books Electronics & Computers 14.6% Grocery, Health & Beauty 8.4% Home, Garden & Tools 8.5% Movies, Music & Games Office Product Sports 42.9% Toys, Kids & Baby * Sales ($) does not include shipping cost, tax or order discount 2.5% Percentage of Units Sold by Category 4.2% 6.3% 0.6% Apparel, Shoes & Jewelry 2.7% Automotive Books Electronics & Computers 10.7% Grocery, Health & Beauty 27.4% Home, Garden & Tools 7.0% Movies, Music & Games Office Product 12.0% Sports Toys, Kids & Baby 26.6% Average Unit Retail Apparel, Shoes & Jewelry Automotive Books Electronics & Computers Grocery, Health & Beauty Home, Garden & Tools Movies, Music & Games Office Product Sports Toys, Kids & Baby $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 Nearly 43% of Amazon sales came from Electronics, and AUR in excess of $42 in this category. In comparison, media categories – Books, Movies, Music and Games -- averaged below $15 per unit. By units sold, Amazon is still primarily a book seller, with over a quarter of unit sales (27.4%) coming from books. Electronics & computers nearly matched book sales, representing 26.6% of all unit sales for the period. eDataSource Proprietary & Confidential 7
  • 8. Monthly Performance by Category Percentage of Sales ($) Percentage of Unit Sold Category April May June April May June Apparel, Shoes & Jewelry 7.6% 10.1% 8.4% 5.5% 7.1% 6.4% Automotive 0.8% 0.8% 0.8% 0.6% 0.5% 0.6% Books 14.7% 14.5% 14.6% 27.2% 27.9% 27.0% Electronics & Computers 44.0% 42.9% 41.7% 27.7% 25.4% 26.6% Grocery, Health & Beauty 8.1% 8.3% 9.0% 11.2% 12.5% 12.4% Home, Garden & Tools 8.6% 7.7% 9.0% 7.4% 6.5% 7.1% Movies, Music & Games 6.1% 6.4% 5.9% 11.1% 11.1% 9.8% Office Product 2.9% 2.5% 3.1% 2.9% 2.5% 2.8% Sports 3.3% 3.7% 4.0% 2.6% 2.6% 2.4% Toys, Kids & Baby 3.9% 3.2% 3.6% 3.8% 3.9% 4.9% *Sales ($) does not include shipping cost, tax or order discount Growth from previous Growth from previous Average Unit Retail Category month (Sales $) month (Unit Sold) April May June April May June April May June Apparel, Shoes & Jewelry 3.2% 49.3% -22.2% 5.1% 32.3% -9.0% $34.59 $39.03 $33.35 Automotive 21.0% 8.7% -12.2% 10.8% -22.0% 39.1% $33.85 $47.15 $29.78 Books 26.0% 10.9% -6.3% 25.2% 5.4% -3.5% $13.41 $14.10 $13.70 Electronics & Computers 12.3% 9.8% -9.6% 21.8% -5.8% 4.6% $39.49 $46.01 $39.78 Grocery, Health & Beauty 6.6% 15.4% 1.0% 16.8% 14.8% -1.2% $18.00 $18.09 $18.49 Home, Garden & Tools 14.7% 0.2% 9.4% 14.5% -9.2% 8.7% $28.94 $31.94 $32.15 Movies, Music & Games -0.3% 18.0% -14.2% 8.9% 2.7% -12.2% $13.56 $15.58 $15.24 Office Product -20.1% -4.7% 15.9% 35.3% -10.6% 9.1% $24.75 $26.40 $28.06 Sports -3.1% 25.1% 0.5% 1.7% 1.4% -6.8% $31.84 $39.28 $42.32 Toys, Kids & Baby 54.8% -7.7% 2.3% 18.6% 4.7% 26.0% $25.96 $22.88 $18.57 * Sales ($) does not include shipping cost, tax or order discount Apparel, Shoes and Jewelry tallied the largest monthly category jump rising nearly 50% from April to May. Sports, Grocery/Health and Beauty and Movies, Music & Games all increased more than 15% over the same period, to lead the exceptionally strong month of May. Apparel, Shoes and Jewelry gave back some of the growth, losing over 22% in the following month (May to June). eDataSource Proprietary & Confidential 8
  • 9. Kindle Analysis Percentage of Total Kindle Sales 5.7% 1.5% 5.9% Kindle Fire Kindle Kindle Touch 7.3% Kindle Touch 3G 11.0% Kindle Keyboard 3G Kindle DX 68.5% Percentage of Kindle Units Sold 0.6% 6.2% Kindle Fire 6.2% Kindle Kindle Touch 11.1% Kindle Touch 3G 54.3% Kindle Keyboard 3G 21.6% Kindle DX Units Sold and Sales Percentage of Kindle Products Kindle Kindle Touch Kindle Kindle Fire Kindle Kindle DX Touch 3G Keyboard 3G % of Total Sales 68.5% 11.0% 7.3% 5.9% 5.7% 1.5% % of Unit Sold 54.3% 21.6% 11.1% 6.2% 6.2% 0.6% The Kindle Fire – the single best-selling product on Amazon – netted the most sales of the Kindle product line in both sales dollars (68.5%) and number of units sold (54.3%) for the quarter. The entry-level, lowest- priced Kindle was a distant second tallying 11% of Kindle sales representing 21.6% of all Kindle units sold. The largest, most-expensive unit – the Kindle DX, boasting a 9.7” screen and a $379 price tag – represents less than 2% of product sales. eDataSource Proprietary & Confidential 9
  • 10. Amazon vs. 3rd Party Performance Percentage of Total Sales Amt $ Percentage of Unit Sold 3rd Party 38.8% 45.8% 3rd Party Amazon Amazon 54.2% 61.2% Average Unit Retail Apparel, Shoes & Jewelry Automotive Books Electronics & Computers Grocery, Health & Beauty Home, Garden & Tools Movies, Music & Games Office Product Sports Toys, Kids & Baby $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 Amazon 3rd Party *Amazon: Include Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC While third party sellers on the Amazon platform comprised the majority of sales for the quarter – both in total sales (54.2%) and, more significantly, in the number of units sold (61.2%) – Amazon’s average unit retail exceeds third parties in 8 of 10 primary shopping categories. eDataSource Proprietary & Confidential 10
  • 11. Percentage of Sales $ and Unit Sold by Amazon Apparel, Shoes & Jewelry Automotive Books Electronics & Computers Grocery, Health & Beauty Home, Garden & Tools Movies, Music & Games Office Product Sports Toys, Kids & Baby 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% % of Sales ($) % of Unit Sold *Amazon: Include Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC * Sales ($) does not include shipping cost, tax or orderdiscount Amazon is the majority seller in the following categories – Automotive, Books, Home & Garden, Sports and Media (Movies, Music & Games). eDataSource Proprietary & Confidential 11
  • 12. Monthly Performance % of Sales $ % of Unit Sold Average Unit Retail 100.0% $40.00 80.0% 55.7% 54.9% 52.0% 61.7% 61.1% 60.8% $30.00 60.0% $20.00 40.0% $10.00 20.0% 44.3% 45.1% 48.0% 38.3% 38.9% 39.2% $0.00 0.0% April May June April May June April May June AUR by Amazon AUR by 3rd Party Amazon 3rd Party % of Sales $ % of Unit Sold AUR by Amazon AUR by 3rd Party by Amazon by Amazon April 44.3% 38.3% $28.38 $22.17 May 45.1% 38.9% $31.24 $24.26 June 48.0% 39.2% $30.78 $21.48 % of Sales $ Sold by Amazon % of Unit Sold by Amazon Category April May June April May June Apparel, Shoes & Jewelry 49.2% 38.8% 43.6% 36.5% 35.7% 35.6% Automotive 72.5% 90.1% 84.0% 76.8% 79.7% 88.8% Books 62.7% 65.4% 65.2% 59.2% 60.2% 58.6% Electronics & Computers 40.7% 43.3% 46.9% 21.7% 21.2% 21.6% Grocery, Health & Beauty 36.7% 40.7% 38.8% 33.8% 35.4% 39.1% Home, Garden & Tools 71.6% 68.2% 76.0% 66.4% 64.2% 65.0% Movies, Music & Games 53.9% 52.9% 57.6% 44.5% 46.8% 47.7% Office Product 40.9% 49.6% 42.2% 40.5% 47.6% 61.0% Sports 82.5% 70.2% 82.4% 82.3% 76.1% 77.3% Toys, Kids & Baby 49.5% 43.1% 45.0% 38.2% 34.8% 34.4% * Sales ($) does not include shipping cost, tax or order discount Average Unit Retail April May June Category Amazon 3rd Party Amazon 3rd Party Amazon 3rd Party Apparel, Shoes & Jewelry $46.60 $27.68 $42.46 $37.12 $40.84 $29.21 Automotive $31.94 $40.20 $53.32 $22.95 $28.18 $42.44 Books $14.21 $12.25 $15.34 $12.25 $15.24 $11.53 Electronics & Computers $74.12 $29.92 $93.81 $33.13 $86.65 $26.91 Grocery, Health & Beauty $19.54 $17.21 $20.76 $16.62 $18.35 $18.58 Home, Garden & Tools $31.24 $24.40 $33.97 $28.32 $37.60 $22.01 Movies, Music & Games $16.42 $11.27 $17.59 $13.81 $18.40 $12.35 Office Product $24.97 $24.60 $27.54 $25.36 $19.40 $41.61 Sports $31.93 $31.40 $36.27 $48.84 $45.11 $32.78 Toys, Kids & Baby $33.68 $21.20 $28.35 $19.96 $24.29 $15.56 *Amazon: Includes Amazon Digital Service, Inc., Amazon Export Sales, Inc, Amazon.com and Amazon.com LLC eDataSource Proprietary & Confidential 12
  • 13. Prime Membership Analysis Comparison of Prime Members and Regular Customers April May June Prime Regular Prime Regular Prime Regular Member Customer Member Customer Member Customer Avg. Order Value $49.23 $44.81 $50.37 $48.76 $47.42 $47.25 Avg. Items per Order 1.66 1.56 1.66 1.53 1.60 1.59 Avg. # of Orders per Customer 4.02 2.13 4.09 2.15 4.12 2.13 Avg. Spent $ per Customer $197.97 $95.39 $205.90 $104.71 $195.52 $100.57 Average Spent $ per Customer Average Order Value $250.00 $60.00 $200.00 $50.00 $40.00 $150.00 $30.00 $100.00 $20.00 $50.00 $10.00 $0.00 $0.00 April May June April May June Prime Member Regular Customer Prime Member Regular Customer Average # of Orders per Customer Average Items per Order 5.00 2.00 4.00 1.50 3.00 1.00 2.00 1.00 0.50 0.00 0.00 April May June April May June Prime Member Regular Customer Prime Member Regular Customer While prime customer spending and items per order does not significantly eclipse regular customers, the average dollars spent and number of orders are both approximately double that of a non-prime shopper. eDataSource Proprietary & Confidential 13
  • 14. Percentage Contribution and Monthly Growth by Prime Member Percentage Contribution Growth from previous month April May June April May June % of Prime Member 18.8% 19.8% 19.3% 0.3% 1.0% -0.5% % of Orders by Prime Member 30.4% 31.9% 31.7% -0.9% 1.6% -0.3% % of Total Sales by Prime Member 32.4% 32.6% 31.7% 0.4% 0.2% -0.9% Percentage of Contribution by Prime Member 100.0% 90.0% April May June 80.0% 70.0% 60.0% 50.0% 40.0% 32.4% 32.6% 31.7% 30.4% 31.9% 31.7% 30.0% 18.8% 19.8% 19.3% 20.0% 10.0% 0.0% # of Customers Total Orders Total Sales Prime membership and contribution to sales held relatively steady through the second quarter. Prime members represent approximately 19% of the Amazon customer base, and are heavy spenders, approaching nearly a third of overall sales. eDataSource Proprietary & Confidential 14
  • 15. Shipping Method Analysis Overview % of Orders by Shipping Methods 100.0% 90.0% 80.0% 66.9% 70.0% 60.0% 50.0% 40.0% 30.0% 19.9% 20.0% 9.3% 10.0% 2.0% 1.9% 0.0% Standard Two-day Free Super Saver One-day Expedited Shipping Shipping Shipping Shipping Shipping Average Order Value Average Shipping Cost $140.00 $14.00 $127.59 $11.78 $120.00 $12.00 $11.18 $100.00 $79.72 $10.00 $80.00 $66.98 $8.00 $54.61 $60.00 $6.00 $36.36 $4.25 $40.00 $4.00 $20.00 $2.00 $1.13 $0.00 $0.00 $0.00 Standard Two-day Free Super One-day Expedited Standard Two-day Free Super One-day Expedited Shipping Shipping Saver Shipping Shipping Shipping Shipping Saver Shipping Shipping Shipping Shipping Major Shipping Method % of Orders Average Order Value Average Shipping Cost Standard Shipping 66.9% $36.36 $4.25 Two-day Shipping 19.9% $54.61 $1.13 Free Super Saver Shipping 9.3% $79.72 $0.00 One-day Shipping 2.0% $127.59 $11.78 Expedited Shipping 1.9% $66.98 $11.18 See appendix for shipping categorization detail. Standard shipping significantly exceeds all other options accounting for nearly 67% of all orders. The costliest orders travel fastest, and are more expensive to ship. One-day shipping charges account for over 9% of the average order value in this category. eDataSource Proprietary & Confidential 15
  • 16. Monthly View of Shipping Methods by Prime Membership Percentage of Orders by Shipping Method April May June Major Shipping Method Prime Regular Prime Regular Prime Regular Standard Shipping 36.3% 80.0% 36.1% 80.7% 38.4% 81.1% Two-day Shipping 59.2% 1.8% 59.7% 2.3% 57.8% 2.2% Free Super Saver Shipping 0.7% 14.4% 0.2% 13.0% 0.4% 12.6% One-day Shipping 2.9% 1.5% 3.0% 1.5% 2.8% 1.7% Expedited Shipping 1.0% 2.4% 0.9% 2.6% 0.6% 2.4% Percentage of Order by Shipping Methods 100.0% 0.7% 0.2% 0.4% 90.0% 14.4% 13.0% 12.6% 80.0% 1.8% 2.3% 2.2% 70.0% Expedited Shipping 59.2% 59.7% 57.8% 60.0% One-day Shipping 50.0% 81.1% Free Super Saver Shipping 40.0% 80.0% 80.7% 30.0% Two-day Shipping 20.0% 36.3% 36.1% 38.4% Standard Shipping 10.0% 0.0% Prime Regular Prime Regular Prime Regular April May June See appendix for shipping categorization detail. Prime customers overwhelmingly take advantage of their free two-day shipping benefit by selecting this option nearly 60% of the time compared to only ~2% selection of two day shipping by non-prime customers. Non-prime shoppers use Standard Shipping 80% of the time. eDataSource Proprietary & Confidential 16
  • 17. Average Order Value by Shipping Methods April May June Major Shipping Methods Prime Regular Prime Regular Prime Regular Standard Shipping $41.16 $35.50 $35.53 $37.38 $33.58 $36.04 Two-day Shipping $51.43 $73.59 $53.99 $92.12 $51.31 $85.63 Free Super Saver Shipping $87.21 $74.31 $137.63 $82.45 $65.41 $82.60 One-day Shipping $78.11 $102.12 $108.80 $192.53 $136.36 $139.40 Expedited Shipping $44.07 $86.19 $107.86 $60.51 $70.55 $50.90 Average Order Value by Shipping Methods $250.00 $200.00 Standard Shipping $150.00 Two-day Shipping $100.00 Free Super Saver Shipping $50.00 One-day Shipping Expedited Shipping $0.00 Prime Regular Prime Regular Prime Regular April May June Average Shipping Cost per Order April May June Major Shipping Methods Prime Regular Prime Regular Prime Regular Standard Shipping $3.91 $4.43 $3.45 $4.46 $3.25 $4.33 Two-day Shipping $0.00 $13.78 $0.00 $13.60 $0.00 $14.70 Free Super Saver Shipping $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 One-day Shipping $5.27 $16.28 $6.35 $17.35 $7.82 $15.46 Expedited Shipping $11.21 $12.50 $11.75 $11.63 $10.64 $9.30 eDataSource Proprietary & Confidential 17
  • 18. Appendix: Product Category List Category Major Category Category Major Category Apparel Apparel, Shoes & Jewelry DVD Movies, Music & Games Jewelry Apparel, Shoes & Jewelry Audio CD Movies, Music & Games Watch Apparel, Shoes & Jewelry Video Game Movies, Music & Games Eyewear Apparel, Shoes & Jewelry Blu-ray Movies, Music & Games Shoes Apparel, Shoes & Jewelry VHS Tape Movies, Music & Games Sports Apparel Apparel, Shoes & Jewelry Audio Cassette Movies, Music & Games Paperback Books Sheet music Movies, Music & Games Hardcover Books MP3 CD Movies, Music & Games Mass Market Paperback Books Electronics Electronics & Computers Spiral-bound Books Wireless Phone Accessory Electronics & Computers Perfect Paperback Books Personal Computers Electronics & Computers Unknown Binding Books Accessory Electronics & Computers Board book Books CD-ROM Electronics & Computers Pamphlet Books Camera Electronics & Computers Magazine Books Software Electronics & Computers Library Binding Books DVD-ROM Electronics & Computers Comic Books Computer Game Electronics & Computers Hardcover-spiral Books Unlocked Phone Electronics & Computers Kitchen Home, Garden & Tools Toy Toys, Kids & Baby Home Improvement Home, Garden & Tools Baby Product Toys, Kids & Baby Patio Home, Garden & Tools Game Toys, Kids & Baby Hardware Home, Garden & Tools Health and Beauty Grocery, Health & Beauty Housewares Home, Garden & Tools Grocery Grocery, Health & Beauty Office Product Office Product Automotive Automotive Sports Sports Reference: http://www.amazon.com/gp/site-directory/ref=sa_menu_fullstore eDataSource Proprietary & Confidential 18
  • 19. Appendix: Shipping Category List Shipping Method Category standard shipping Standard standard Standard expedited shipping Expedited shipping expedited Expedited shipping two-day shipping Two-day shipping free super saver shipping Free super saver shipping one-day shipping One-day shipping expedited international shipping Not Included Amazonglobal priority shipping Not Included Saturday delivery Not Included no-rush delivery Not Included priority shipping Not Included local express delivery Not Included priority international courier Not Included release-date delivery Not Included Amazonglobal expedited shipping Not Included standard delivery: carrier will contact you for scheduling an appointment Not Included scheduled delivery Not Included standard international shipping Not Included eDataSource Proprietary & Confidential 19