Prime Day boosted the already-phenomenal usage metrics of Amazon’s mobile app
By Abhinav Agrawal
Amazon held its second Prime Day on Tuesday, July 12, 2016. For those unfamiliar with it, Prime Day is an occasion for Amazon Prime members to take advantage of thousands of exclusive deals. Analysts anticipated this to be the biggest shopping day of the year to date. Unlike Black Friday when users shop for presents for others for the holiday season, Prime Day is more likely to be a hedonistic indulgence.
On the occasion of this highly anticipated day, we wanted to use insights from SurveyMonkey Intelligence to understand how Amazon fares on mobile. How does Amazon’s app compare to those of brick-and-mortar players like Walmart and online-only players like Jet? How fast is the Amazon app growing relative to its competitors? How is the Amazon app’s audience different than other e-commerce providers? And finally, did Prime Day impact Amazon’s mobile metrics in any way?
PrimeDay boosted Amazon daily active users by 35%
Amazon’s daily active users (DAU) increased by 35% to approximately 12 million daily users on Prime Day. By looking at days before and after, it is clear that the increase was definitely driven by Prime Day.
Amazon is the largest e-commerce player — by far!
By any metric, Amazon is the largest e-commerce player in the US. It has ~30+ million monthly active users (MAU) compared to Walmart, which has ~15 million monthly active users. Other players like Target, Kohl, and Jet are clustered around the ~5 million MUA mark.
To put that in context: 1 out every 10 Americans uses the Amazon mobile app every month!
Amazon isn’t just the biggest, it’s also the stickiest shopping app
In addition to total audience, retention and frequent usage (i.e., engagement) are extremely important in e-commerce. Each time a user open the app is an opportunity for the merchant to make a sale and maintain an ongoing relationship with the customer. With its high engagement and low churn (i.e., high retention), Amazon again outperforms all of its major competitors.
The Amazon app is the biggest, and getting bigger — growing faster than all other shopping apps
Despite being a 20+ year old company (founded in 1994) and having the highest penetration in the United States already, Amazon is still growing faster on mobile than all the other players combined — including new entrants like Jet or Boxed. It gets ~75 thousand new downloads every day in the United States with most other major players getting downloads in the single thousands.
You can also see that Prime Day was successful at driving an increase in downloads for the Amazon app.
Amazon owns the most valuable customer segment on mobile
Comparing Amazon’s audience to other players, 2 trends emerge:
- On average, the audience is younger than those of traditional players (like Walmart or Best Buy), but older than those of new upstarts like Jet. Most likely the audience is aging along with the product.
- Amazon has the highest median income compared to its customers so it has captured the most valuable customer segment (i.e., the one likely to spend the most).
Even more worryingly for players like Walmart, many of their customers use the Amazon app as well! For example ~50% of Walmart app users also use the Amazon. (The reverse is a negligible percentage.) In other words, Walmart app users may not be particularly loyal to Walmart and may be shopping for the best deal wherever it is available.
Amazon’s mobile app is bigger, stickier, and growing faster than other e-commerce and shopping players. That is truly unbelievable performance — along the lines of Facebook or Google. No wonder the stock price of the company has been on a tear compared to its rivals (up 35% in the last year versus flat to negative for everyone else). We see no reason why this relative performance would reverse anytime soon especially going by mobile performance. With performance like this, it becomes clearer why prominent Venture Capitalist Chamath Palihapitiya believes Amazon stock could be worth up to $10,000 in the next 10 years.
Note: the author previously worked at Amazon and is personally long Amazon stock.
This post originally appeared on July 18, 2016 on the blog of SurveyMonkey Intelligence, a provider of competitive intelligence for mobile apps.