Dive Brief:
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Amazon’s mobile application enjoyed a 35% usage boost during last week's Prime Day event, surging to some 12 million daily active users during the 24-hour sale, according to research from SurveyMonkey Intelligence.
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One out of every 10 Americans uses the Amazon mobile app each month, SurveyMonkey notes. Monthly active users now exceed 30 million, compared to Wal-Mart’s 15 million and 5 million each for Target, Kohl’s, Jet and other retailers.
- SurveyMonkey adds that despite enjoying higher U.S. penetration than its rivals, 21-year-old Amazon still generates some 75,000 new mobile app downloads each day nationwide, more than all other retailers combined and far ahead of newer entrants like Jet and Boxed.
Dive Insight:
SurveyMonkey Intelligence’s blog post, detailing its latest look into Amazon following the retailer's second annual Prime Day, has plenty of nuggets to make other merchants cringe.
For starters, Amazon’s mobile app is likely to be used by its competitors’ customers, while the reverse is rarely true. About half of Wal-Mart app users also use the Amazon app, but only a negligible percentage of Amazon’s app users are engaging with Wal-Mart, for example. “In other words, Wal-Mart app users may not be particularly loyal to Walmart and may be shopping for the best deal wherever it is available,” writes SurveyMonkey VP Abhinav Agrawal.
Adding to competitor woes, Amazon’s average app user is female, about 35 years old and earns an annual income of $73,000. Wal-Mart’s app users skew older, with an average age of 41, and have decidedly less money to spend with an average annual income of $52,000.
“Amazon’s mobile app is bigger, stickier, and growing faster than other e-commerce and shopping players,” according to Agrawal. “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.”
Amazon said its second annual Prime Day was the single biggest day in company history, with global merchandise sales eclipsing the first Prime Day event by more than 60% worldwide and more than 50% in the U.S.
Prime Day 2016 highlights include a 2.5x increase in Amazon Fire TV devices compared to a year ago, along with sales of hundreds of thousands of Kindle e-readers. Shoppers also purchased more than 2 million toys, more than a million pairs of shoes and more than 90,000 TVs. In addition, Prime member orders on the Amazon mobile app surpassed Prime Day 2015 app orders by more than 2x, and more than a million consumers accessed the Amazon app for the first time ever.