When Amazon took over Whole Foods in the summer of 2017, a whole new segment of people opened their eyes to the brave new world that is Amazon’s oyster (now on sale for $2.95!). In its bid to win every type of product and entertainment-related business on a global scale, Amazon’s growth is nothing short of epic.
Amazon isn’t coming. It’s here.
As of 2016, Amazon’s self-disclosed sales accounted for 15 percent of total U.S. consumer online sales - but experts suspect it was “underselling” itself, and the real digits are closer to 20-30 percent of all U.S. online sales. In a USAToday story, Scot Wingo, executive chairman of Channel Advisor, an e-commerce software company described Amazon this way:
“The punchline is that Amazon’s twice as big as people give them credit for, because there’s this iceberg under the surface, but you only see the tip.”
Well, that iceberg is looking for new Media representation. Our new pitch brief tells you what you need to know to feed the beast.
5 Fun and frightening facts about Amazon
Amazon sells more than 350 million products in 185 countries.
If Amazon can’t beat’em, they buy’em: Amazon has acquired IMDb, Alexa, Audible, Goodreads, Zappos, and most recently Whole Foods (its largest acquisition so far), among many, many others.
Amazon has also put a lot of companies out of business by undercutting prices or just plain copying (compare Amazon Fresh kits to Blue Apron). And it’s far from finished. Etsy seems to be on the hitlist as indicated by Amazon’s debut of “Amazon Handmade” in 2015.
Amazon’s four largest areas of investment, as of 2017, are technology & content (ie. Prime Instant Video and Amazon Web Services), fulfillment centers, international operations (especially in Asia), and sales teams for Amazon Web Services and advertising.
Amazon’s acquisition of Whole Foods has sparked many theories as to how they’ll use the brick-and-mortar stores, one of which is that Amazon will move into distributing products more locally - opening the door for nearly immediate delivery.
Is online grocery shopping the next big thing?
A 2017 report from Food Marketing Institute and Nielsen show that online grocery sales are set to spike, growing five-fold over the next ten years. Currently, only 25 percent of consumers buy groceries online - up from 19 percent in 2014. And, the consumer segment leading the charge? Millennials, of course.
Young, engaged digital shoppers are the hot emerging market for Amazon’s grocery venture, and if you’re going to pitch Amazon, you’d better get to know this segment really well.
Meet the Digital Grocery Shoppers
Whereas Amazon’s current audience is 60 percent female, most of whom fall into the Baby Boomer generation, the audience they need to acquire is about 30 years younger.
Digital Grocery Shoppers is the consumer segment we explored for our Amazon Pitch Brief.
Digital Grocery Shoppers are 77 percent female, 58 percent married, 47 percent with children. They score high in interests including Beauty & Wellness, Health Conscious, Money Savers and Art Appreciators.
Age-wise, 35 to 44 seems to be the sweet spot, but that will change as younger Millennials begin to take on the burden of grocery shopping for themselves.
Here’s what you need to know about this segment: That “health conscious” interest isn’t just lip-service. These are label readers. They want organic, whole foods. But they don’t always have time to cook themselves - jobs, kids and side-hustles are distracting like that. So when given the option, they will choose healthier pre-made meals (Babyganics is a popular brand - because they’re not just feeding themselves!), and they supplement their nutrition with thoughtfully chosen vitamins and supplements.
Clearly, acquiring Whole Foods was a smart move on Amazon’s part. Because the people most likely to be interested in having food delivered are also those who want that food to be as healthy as possible.
How can you reach them? Health and Fitness Apps are part of everyday life for these ladies - interest in these apps grew by 35.8 percent over the last quarter.
You can also attract them with coupons.
Daily deal websites and coupons appeal to these consumers, because cost is a factor in their decisions. It’s not the only factor. Health and quality come first, at least when purchasing groceries, but price could be the deciding factor between ordering apples or oranges.
So if you want to get in front of Digital Grocery Shoppin’ gals, start thinking in terms of partnerships with apps and promotions on deal sites.
Influencer marketing could also be a powerful draw to reach shoppers who fall into the wider demographic but haven’t made the leap to purchasing online… yet.
For a list of top influencers, you’ll have to take advantage of our 3 free searches on Cubeyou (they’re yours when you download the Amazon pitch brief!).