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How Amazon’s Ecommerce Soared During the Covid-19 Pandemic

How Amazon’s Ecommerce Soared During the Covid-19 Pandemic




During the pandemic, we saw an increase in eCommerce across the board. With nowhere to go and nothing to do, millions of people turned to online shopping. One company that undoubtedly benefited from the pandemic was Amazon.

It’s tricky to remember a time where billionaire, Jeff Bezos, didn’t control how we shop. How did we function waiting 3-7 working days for a parcel to arrive? Where else could we buy completely unnecessary items that serve no purpose in our lives, whilst convincing ourselves that they do?

Amazon swiftly became a pandemic giant, with its annual revenue soaring to $386 billion in 2020. This month, it came to light that Jeff Bezos will step down as CEO, and begin his new position as Executive Chair of the Amazon Board, whilst Andy Jassy becomes CEO. But this won’t slow down Amazon’s profits.

It remains a big question for everyone. How is it that a man who bears such a resemblance to Dr Evil, achieved world domination of the eComm world in such a short space of time?

For that reason, we decided to look at how Amazon’s eCommerce soared during the Covid-19 pandemic.

Voice Search

During the pandemic, Amazon managed to capitalise on using voice search. As most people began to work from home, the popularity of the Amazon Alexa increased. Replacing human contact with a device seems quite dystopian, but then again, so was the whole of 2020.

Still, it became a valuable resource with many people using it for streaming music, asking questions and staying up to date with news bulletins. Ultimately skill usage grew up to 65% worldwide by the end of 2020, and it’s only going to continue. It’s estimated that by the end of 2021, 5 BILLION people will be using voice-activated search and assistants! Not bad for a guy who started in the garage of his home in Washington all those years ago.

Amazon Prime

Universally, everyone panicked to buy two things during the pandemic; toilet roll and an Amazon Prime subscription. With benefits such as free next day shipping, streaming videos, getting access to discounted products to name just a few, it’s no wonder Prime became so popular. At the end of 2020, Amazon Prime had 150 million users worldwide, rivalling Netflix, who currently have around 167 million users.

Amazon Ads

Since Amazon has inevitably changed the way we shop; it’s become a perfect place to advertise. Simply put, advertising on Amazon can help to drive sales, reach engaged customers and promote products. From ads alone, Amazon increased its revenue by 41% in the final quarter of 2020! Sweeping up 3rd place as the most effective ad platform behind Google and Facebook, Amazon is predicted to break more records in 2021. If you’d like to find out more about Amazon Ads, take a look at our previous blog post for useful Amazon advertising hacks.

Amazon Prime Day

Unless you’ve been hiding away and living under a rock (most of us probably felt like that during 2020 anyway), you’ve probably heard of Amazon Prime Day. Every year, Amazon host a global shopping event with discounts and deals exclusively for Prime members. Amazon’s eCommerce During Covid-19 inevitably rose, and Prime day was a huge contributor to this success.

Prime Day has become so significant, that it has essentially become a rival to Black Friday and Cyber Monday. During the pandemic, Amazon Prime Day broke records when its sales hit $10.4 billion, which increased by 45.2% from 2019.

Supply and demand

Amazon’s business model was designed to survive critical situations. Throughout 2020, consumer spending on Amazon increased by up to 60% during May and July as they continuously profited from the pandemic. The company has grown so vastly, that as it stands, Amazon is responsible for 38% of the eCommerce market. And, with plans to expand their business (they’re currently trialling their own air travel), we don’t see this growth slowing down anytime soon.

So, there we have it. Amazon’s eCommerce During Covid-19 really did soar in 2020, putting it at the forefront of retailers. Our guess is that they’ll continue to grow even more this year.

Want to learn about how we can help with Amazon shopping? Get in touch! We’d love to have a chat with you and show you how we can help your business grow and scale.