How did Amazon become one of the top places to shop?

In the first quarter of 2024, Amazon reported $143.3 Billion in Revenue. While once starting in Jeff Bezos’ garage, Amazon is now one of the biggest names in E-commerce, while having 37.8% in the market share and is one of the largest companies in the world. Why have consumers grown to make Amazon their primary shopping experience?In a 2020 case study, it revealed that Amazon appealed  to 76.8%  of its consumers through fast and free shipping . 68.9% of people shopped  on Amazon due to its vast variety, and 65.7% shopped because they were an active Prime member.

Today, 45% of U.S. brands sell on Amazon and users are spending 12.8 billion minutes on the app per month. With this, the company has seen massive success by obtaining $35 million a month in sales,  which increased from 2020 standing at $25 billion and seeing only $1 billion in 2016 . Records of 83% of households in the United States now shop with Amazon, which has pushed the business to  continue to provide everyday essentials.  Due to the company's drastic growth, it's no surprise that Amazon has now changed the way in which we shop. While many brands have tried to introduce a compelling value proposition, having Amazon as a competitor makes them get lost within the crowd. 

Amazon's Prime program enables a psychological lock in effect. When a consumer has Prime eligibility, the majority of consumers will filter content for Prime items only. With this, given the deal that they are receiving, it can be understood why a consumer would opt out for shopping somewhere else. 76% of customers stated that when they are ready to buy a product, they go to Amazon rather than Google. Due to this, customers continued to be satisfied with the ease of convenience, price, and benefits.