Photo by Rubaitul Azad on Unsplash
March 19, 2025
75% of Amazon Shoppers Are Women, and the Retailer Boasts a 99% Repeat Rate: Can Amazon Continue To Grow?
A recent snapshot provided by Numerator took stock of Amazon’s current operations, bringing several interesting facts into the broader conversation about the state of today’s retail business.
A few of the findings, concisely delivered:
- Women comprise 75% of Amazon shoppers, and women are more likely than the average U.S. consumer to shop with Amazon (indexed at a score of 103, versus 100 baseline). Men are less likely to shop with Amazon under these terms, scoring at 92 on the index.
- Black or African American consumers represent 13% of Amazon shoppers, as do Hispanic or Latino consumers. Asian consumers represent 6%. All three of these demographics are less likely to shop at Amazon than the average American consumer, indexing at 96, 93, and 97, respectively.
- Baby boomers are the largest age cohort buying from Amazon, making up 33% of the company’s consumers. Gen Xers and millennials aren’t too far behind, though. However, baby boomers also indexed at a below-average likelihood (92) to purchase from Amazon, suggesting that while older Americans may represent a substantial number of Amazon-loyal shoppers in terms of raw numbers, the generation as a whole isn’t necessarily driven to purchase from the retailer.
- Amazon exhibited a striking 99% repeat rate — customers who returned to purchase a second item or more — and showed an equally impressive household penetration rate of 86%.
E-Commerce Repeat Rate Averages 28%-30%, but Amazon Bucks the Trend in a Big Way
Numerator’s data showing Amazon with a repeat rate of 99% is notable simply because the average e-commerce repeat rate is somewhere between 28% (per Metrilo) and 30% (according to Decile data, via Yahoo News). While logic may suggest that Amazon, as the largest e-commerce retailer in the world by a significant margin, is due to have higher-than-average numbers in this regard, a near-perfect score is certainly worth evaluation.
If Amazon is already capturing the hearts (and wallets) of faithful consumers, what can it do to address opportunities among demographics less likely to click “buy” on its online storefront? Men and people of color, in particular, all posted below-average index scores when it comes to shopping with the brand. And while middle-income shoppers and rural consumers (both indexed at 103) showed strength for the company, urban customers (indexed at 97) and lower-income consumers (indexed at 95) showed softer-than-usual support for Amazon.
For its part, Amazon has been investing in some forms of expansion, particularly via the launch of Amazon Haul — designed to compete with low-cost Chinese e-tailers such as Temu, SHEIN, and TikTok Shop — as well as industry-omnipresent AI tools, notably its incoming Alexa+ program. On the other hand, it is engaging in a significant trimming of corporate headcount (14,000 managerial positions), per NDTV World, as well as the discontinuation of “try before you buy” capabilities.
Discussion Questions
Has Amazon hit a high-water mark in terms of its market penetration in the U.S.?
How can Amazon inspire under-engaged demographics, as suggested by Numerator data, to join the retailer’s core customer base? Is competition from other retailers catering to the needs or desires of these consumer demographics a significant headwind?
What is the “secret” behind Amazon’s incredible 99% repeat rate statistic? Do you believe it to be accurate, or a data outlier?
Poll
Loading …BrainTrust
David Biernbaum
Founder & President, David Biernbaum & Associates LLC
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Melissa Minkow
Director, Retail Strategy, CI&T
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Growth? Yeah it needs to reach the other 86%! Seriously, tho, when a company reacheds these kinds of numbers, they aren’t very meaningful in some ways (even if it reaches 100%, the incremental 14% isn’t likely to represent nearly as much as that number suggests). Nor do I find the difference in the various demographics very meaningful (OTC it’s remarkable, to me, how little variation they exhibit). So what does all this mean? If it can’t increase the various metrics, does that mean it’s going to stagnate? No it very much doesn’t mean that: Amazon may – or may not – have reached a relative high-point, but as the overall online market continues to grow, so, too will Amazon.
Yes, of course Amazon can continue to grow. It has a very high penetration rate, but there is huge scope to expand share of wallet from existing customers.
I find this fascinating, as I would expect men to be more likely to shop Amazon than the numbers are saying. The repeat bit isn’t surprising, but it is an important aspect for other retailers to be inspired by. Amazon will undoubtedly grow.
This man goes to Amazon first, and if they have what I am looking for, I don’t go anywhere else. I don’t care if it might cost a little more. It isn’t worth the time to search for a better price that is rarely meaningful.
This is kind of lame. Initially, it was all about price. Then everyone met their price and it became about speed. But the company’s tactics have been exposed and are rather unappealing. Now, unless I’m a real hurry, I’d just as soon support smaller businesses.
By the way, to my knowledge, Amazon’s retail operations are still not profitable. We’ll never quite know, as the company doesn’t break out P&Ls by line of business.but I think tactics and competition has caused it to approach market saturation.
as we speak I am watching a Netflix series called “Buy Now: The Shopping Conspiracy.” Would that we were so clever as an industry! There’s so much nonsense in there What is true is the incredible waste that retailers and producers generate. That is true and we clearly need to deal with it. Industry wide. However,they do focus a lot on Amazon, so far.
anyway, I think the market is close to saturated.
You and I aren’t normal shoppers. I know personally people who does 1000 orders a year with amazon as a household (they get a gift at the end of the year apparently), it is about assortment, availability, speed, consistency and price. We know they are competing against the likes of Aliexpress and Temu is certain categories, but overall they still have an ecosystem driven by Prime that keeps people coming back.
While there may be other customers to recruit as Amazon shoppers, there is more competition than ever. However, Amazon continues to add services and vertical lines of business, which is how it continues to retain and grow members and customers. As for the reported high retention rate? Amazon is known for its amazing service. People know, like, and, most importantly, trust doing business with them.
Its wide range of products, competitive pricing, and fast delivery options through Prime contribute to Amazon’s impressive customer loyalty.
In addition, Amazon’s excellent customer service and easy return policies encourage repeat business. In combination, these elements make Amazon’s 99% repeat rate statistic plausible and evidence of the effectiveness of its customer retention program.
Amazon lacks legitimate competition in the U.S., at least in e-commerce, and it will be very unlikely, difficult, and extremely expensive for any company to compete, for a very long time. Amazon is more than just a brand, it’s very much part of American life, in more ways than one can list.
Amazon will continue to grow and expand in its baseline business model for many years to come, but as all of us have witnessed many times over the years, almost nothing last forever. Who thought in 1970 that Sears would disappear from the marketplace in our very own lifetimes?
Amazon will keep expanding in it’s non baseline businesses, too. It will acquire other retail chains, and other types of businesses, in many different industries.
Exactly! “Amazon is more than just a brand, it’s very much part of American life, in more ways than one can list.”
I believe Amazon is close to topping out when it comes to percentage of market penetration. But it can still grow in absolute dollars as the total digital retail market expands. My gut tells me its technological advantage will diminish gradually as competitors (Walmart and a few others) learn to match them in speed and accuracy and design top-notch experiences.
The lack of sophisticated understanding here is both distressing and encouraging (hope I can continue to educate.) Retention rate and market share are mathematically linked. Amazon’s high share of ecommerce demands that it has a really high customer retention rate. If one were to create a markov matrix of switching across state spaces (customer of amazon, non customer but favorable, non customer not favorable, etc.) and you have the transition probabilities you can calculate the steady state share and penetration that Amazon is headed towards. It is based on linear algebra that I have used for CPG switching matrices. So 99% is not surprising and if I had the matrix I could tell you what their steady state market share and penetration is likely to be. I think I will reach out to my Numerator contacts on this.
Man, that’s deep. So what’s your conclusion ? Yes or no?
My conclusion is that I need the data to do the analysis which has not been done apparently by Numerator (or they chose to go for drama). It is straightforward but I need the data. My suspicion is that it will show that Amazon has not finished growing. there is plenty of growth left!
High-water mark? Really? As with any massive business, as the numerator grows, so does the denominator, and the percentage decreases. The numerator can be a record-high number, and we see a decline in the rate of growth.
The entire e-commerce market has a long way to go. Its retail share is between 18% and 25%, depending on who is reporting. Is it not unbelievable to suggest that it will represent 50% in the next decade? That is a lot of upside.
Perhaps, mainly for Amazon, as David B. notes, “Amazon is more than just a brand, it’s very much part of American life, in more ways than one can list.”
Amazon’s repeat rate is impressive, and Prime likely plays a big role – once subscribed, there’s little reason to shop elsewhere. The fast shipping, exclusive deals, and bundled services make it a hard habit to break.
To expand its appeal beyond its predominantly female customer base and increase penetration among underrepresented demographics, Amazon should return to its innovation heritage. There is ample opportunity to pull in some of the available market (i.e. introduce personalized cultural marketplaces featuring products and brands specifically curated for diverse communities, implementing a premium tier membership beyond Prime that offers exclusive products, early access to new technologies, and specialized concierge services that leverages capabilities its competitors cannot match); however, this growth should be prioritized insomuch as its profitable growth.
Amazon’s dominance among women shoppers (75%) is a testament to its convenience and product variety. However, its lower engagement among men, urban consumers, and lower-income groups presents a clear opportunity.
The 99% repeat rate proves Amazon’s strength in retention, but growth demands targeted expansion. Enhancing personalization for men, curating selections for urban shoppers, and offering flexible payment options for lower-income consumers can drive stronger engagement.
Amazon’s strength has always been its adaptability. By evolving its approach to under-engaged demographics, it can push past market saturation and unlock new waves of growth.