E-commerce Insights: Focus on Amazon Buyers’ Behavior in the European Market
Penetration Rate*: In Spain, Amazon’s penetration rate is the lowest, covering 50% of the online market. In Germany, the platform covers 64% of the market.
*Penetration rate refers to the proportion of consumers who have made a purchase among potential consumers. In other words, it indicates the market coverage rate.
Average Spending: Germany also leads in average spending, with Germans having spent an average of €1,377 on Amazon in the last 12 months. In Italy, the average spending surpasses 1,000 euros, reaching €1,064. In the UK, the average is €999, and in France, it is €860. Spaniards are the least spenders at €768. Average spending varies twofold across the European market.
Average Basket Value: The average basket value ranges from €27 for the UK to €46 for Italy. Both the French and the Spanish have an average basket value of €43, while Germans have €36.
Number of Items per Order: Unsurprisingly, the act of purchasing has become commonplace on Amazon. For all analyzed countries, the number of items per order ranges from 1.2 to 1.4.
Purchase Frequency: It varies twofold between Spain (18 orders in a year) and Germany (39 orders placed).
Wallet Share: In France, Amazon’s customer** base allocates 35% of its online shopping budget to Amazon. In Italy, out of €100 spent online, €69 goes to Amazon for the customer base. The Italian customer base is the most loyal in Europe.
**Amazon Customer Base: Customers who have made at least one purchase on Amazon in the last 12 months.
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Who Are Amazon Buyers? Which Generations Spend the Most on the Platform?
In European countries, the Y generation contributes the most to Amazon’s revenue. In France, it represents 51% of buyers.
In Spain, the X generation’s influence is significant, accounting for 29% of Amazon customers, while the Z generation accounts for 24%.
In Italy, the Y and Z generations together make up 80% of the platform’s online customers.
The Main Product Categories Purchased on Amazon in Europe
The categories with the highest impact on Amazon’s revenue are Culture & Games, DIY & Garden, Electronics & Computers, Fashion, FMCG (fast-moving consumer goods), and Home & Appliances.
Key takeaways:
- Surprisingly, FMCG (fast-moving consumer goods) is the most purchased category on the platform in the UK!
- The French are the e-shoppers who spend the most in the Culture & Games category.
- The Electronics & Computers category leads in all analyzed countries.
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How Did Amazon Emerge as the Global E-commerce Leader?
Through a subscription-based loyalty program: Amazon Prime. It is Amazon’s primary competitive advantage. Currently, no other player can compete with the benefits offered to Prime members. Beyond selling products, the platform provides a multitude of services:
- Free one-day delivery (or even less in major cities)
- Access to Prime Video and Prime Music, on-demand video and music platforms from the brand
- Prime Gaming, including a paid subscription on Twitch and content on PC games
- Access to Prime Days, promotional days dedicated exclusively to Prime members
- Etc.
The advantages of being a Prime member are ever-increasing, and members have no reason to order from a competitor. Amazon’s strategy is simple: monetize existing customers.
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