Who is Amazon‘s Target Market in 2022? Key Demographics Revealed
As the largest online retailer, Amazon appeals to a wide range of consumers. However, the company does tailor its offerings towards specific demographics and psychographic profiles. Here‘s a deep dive into the key traits that define Amazon‘s target market.
Age – Where Amazon Draws the Most Shoppers
Amazon attracts shoppers across all age groups, but adults aged 25-54 make up the bulk of their customers according to surveys:
- 42% of Amazon app users are aged 25-34 years old
- 34% of Amazon shoppers are 35-54 years old
| Age Group | Percentage of Amazon Shoppers |
|---|---|
| 18-24 years old | 12% |
| 25-34 years old | 42% |
| 35-44 years old | 21% |
| 45-54 years old | 13% |
| Over 55 years old | 12% |
Why does this core 25-54 demographic dominate? Here are some of the key factors:
Prime earning years: People aged 25-54 are in their peak spending years and can afford Amazon‘s premium offerings. Median income tops at 45-54 years old.
Raising families: Parents between 30-50 benefit greatly from Amazon‘s selection of household items, along with the convenience of delivery.
Tech-savvy: People in this age group are digital natives and feel comfortable shopping online.
While the 25-54 group makes up the majority, Amazon is successfully growing other segments:
- 18-24 year olds appreciate the vast selection and affordability of Amazon for setting up their first households.
- 55+ shoppers are increasing their online purchasing as they become more tech-adept. I expect their representation to grow significantly in the coming years.
Gender – An Equal Split Among Shoppers
In the past, slightly more women shopped on Amazon than men. However, it‘s now reached close to an equal 50/50 split between male and female shoppers.
According to a 2019 survey, the breakdown is:
- 51% men
- 49% women
This balance reflects Amazon‘s incredibly diverse product range appealing to all genders. However, some product categories do see more male or female consumers:
- Women account for the majority of books and clothing/accessory sales.
- Men lead purchasing in categories like home improvement, consumer electronics and automotive accessories.
Location – Where Amazon‘s Shoppers Reside
Amazon has retail sites in 16 countries, but the United States still accounts for the lion‘s share of its customer base at over 60%. Rounding out some other top markets:
- United Kingdom: 8%
- Germany: 8%
- Japan: 6%
- Rest of world: 18%
Within the U.S., California, Washington, New York and Texas lead for state location of customers. Urban areas like New York City, LA and Chicago have especially high concentrations of users.
As Amazon continues expanding internationally, I expect to see other countries gain share. India in particular presents a massive growth opportunity in the coming decade.
Income Level – Middle to Upper Class Shoppers
The typical Amazon customer falls into middle to upper-middle income brackets. According to Business Insider, the average household income of Prime members is:
- All Amazon shoppers: $85,000
- Amazon Prime members: $112,000
As a premium service costing $139 per year, Amazon Prime tends to attract more higher-income consumers. Key income profile stats:
- Over 60% of Amazon Prime members have annual household incomes over $75,000
- Only 15% of Prime members have incomes under $40,000
Higher income households are Amazon‘s most profitable segment. They spend more per transaction and frequently utilize benefits like Amazon Fresh and Prime Video/Music.
Psychographics – Who Amazon Targets by Lifestyle & Values
Demographic info only tells part of the story. Amazon also targets shoppers based on psychographic profiles – attributes like attitudes, values and lifestyles.
Some of the key psychographic segments include:
Tech-savvy shoppers – Amazon attracts consumers deeply involved with digital devices and online services. They rely on technology to make purchases efficiently.
Time starved professionals – Amazon Prime appeals to busy, career-focused households who value convenience. Two-day delivery helps them save time.
Suburban families – Dual-income middle-class families with kids depend on Amazon for speed and value across purchases.
Bargain & deal seekers – Price conscious consumers flock to Amazon for competitive pricing, promotions like Prime Day, and easy price comparisons.
Frequent & specialty shoppers – "Power users" who shop on Amazon daily or weekly for deals on specialty items like comics or handmade goods.
Amazon employs advanced filters and algorithms to display personalized recommendations and offers to each psychographic group. This drives higher conversion and sales from each segment.
As you can see, Amazon uses data to finely tune its site experience and product selection to appeal to core demographics and psychographic profiles. By intimately understanding the traits of its diverse customer base, Amazon sees incredible loyalty – over 100 million Prime subscribers can‘t be wrong!
Let me know if you have any other questions on who comprises Amazon‘s large (but targeted) market. Happy shopping!
