Global insights: Spotlight on Amazon in Emerging Markets

Kayla de Oliveira

August 8, 2022

Pattern insights

Following Amazon’s reported growth of 22% between 2020 and 2021our data scientists analyzed Amazon in emerging markets and compared it to countries where Amazon has already achieved dominance.

Pattern’s Amazon Consumer Insights Report 2022 highlighted interesting insights into the similarities and differences in the ways Amazon is used across 17 different countries.

We carried out research on various macroeconomic indicators and data related to Amazon usage in each country to better understand the key factors that determine the suitability of the markets. Below, we outline the most interesting Amazon global insights for brands determining which emerging markets they should have a presence on the marketplace.

Population, urbanization, and GDP per capita are all factors which have a large effect on ecommerce and marketplace strategy in a country. These factors need to be taken into consideration when understanding the potential a brand has when entering a new market.

Notable takeaways from the report are highlighted below.

Price of Amazon Prime

The monthly cost of Amazon Prime varies greatly depending on how developed the Amazon market is in the country. We noticed that in countries with a higher GDP per capita and a more dominant Amazon presence, the price of Prime is substantially higher, for example, in the US ($14.99) and in the UK ($10.08). The monthly cost of Prime in the UK has recently increased by $1.26 due to higher operating costs, but we believe that UK consumers will accept this increase.

As a comparison, less developed markets with lower GDP per capita figures, such as Poland ($2.56) and Brazil ($3.12), have significantly lower monthly Prime prices. Amazon purposely prices Prime to be very cost-effective for customers in emerging markets as a customer acquisition strategy and to help grow its market share more quickly.

Desktop vs. Mobile

IndiaJapan and Mexico were found to have higher percentages of traffic from mobile devices compared to other markets. This is in line with data which looks at the leading countries based on retail mobile commerce sales growth, and shows how particular countries spend more time online using mobiles rather than desktops.

App Downloads & Ranking

In this year’s report, we made the decision to include data on the Amazon App (Android), as more consumers are shopping online on mobile devices. This is reflected in the average monthly downloads and category rank of the app.

Mexico sees an average of 1.2 million monthly downloads of the Amazon (Android) App. This is expected, as Mexico is one of the regions that has a higher percentage of traffic from mobile devices compared to desktops.

In terms of average monthly Amazon web traffic, Mexico is the 9th largest out of the 17 countries analyzed, but after the US and Brazil, is the 3rd largest in terms of monthly downloads of the Android App, highlighting the country’s preference for using the Amazon App.

Visit Duration & Page Views

In markets where Amazon is robust and well developed, like the USAUK and Germany, consumers tend to spend more time on the platform and view more pages per visit, as there is more choice from a wider range of products to explore.

On the other hand, in markets where Amazon is still either at its early implementation or growth phase, like the NetherlandsPoland, and Brazil, there is less on offer and a far smaller selection or products. Inevitably, we noticed consumers have a lower average visit duration and view fewer pages in these markets. We would expect to see these metrics increase as Amazon’s product selection increases in these markets.

Top Selling Categories

There are many similarities between the different markets in terms of the top selling categories in each country. Out of 17 countries, 12 had Home & Kitchen and 11 had Electronics in their top 3 categories. Regional differences can be seen with Sports & Outdoors only ranking as a top category in the UK, Video Games only in Japan, and Hardware only in Germany.

It is important for brands to acknowledge that not all categories will sell successfully across all markets. Just because the category is popular in one or more markets, does not mean that it will work across all 17 instances that we analyzed.

Our Amazon consumer insights report shows that although the online marketplace dominates online retail in the USA and several other Western European countries, the company is aiming to build that position in countries where it is newer in the market by taking into account the regional differences in consumer behavior and expectations within its proposition.

Download the full report here, and contact us here to learn how we could support your global marketplace strategy.

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