Kindle Fire and Kindle e-Reader motivate Amazon customers. 40 percent of Amazon customers have a Kindle device.
Consumer Intelligence Research Partners released an analysis of Amazon Kindle devices, the tablet and e-readers from Amazon (NASDAQ:AMZN). This analysis indicates that Amazon has over 20 million Kindles in consumer hands as of September 30, 2013, with significant penetration into the Amazon customer base.
CIRP surveyed U.S. customers of Amazon from the three-month period, ending November 15, 2013. Based on the survey data, we estimate that Amazon Kindle devices (including Kindle Fire and Kindle e-Reader) have an installed base of approximately 20.5 million units, as of September 30, 2013. Amazon Kindle device owners account for 40 pecent of all Amazon buyers (see chart).
Kindle Models of Amazon Buyers:
28 percent of Amazon customers own a Kindle Fire, while 21 percent own a Kindle e-Reader. Interestingly, nine percent of Amazon customers own both devices, suggesting how well Amazon has done to drive sales of what amounts to a portal to Amazon.
We estimate that Amazon Kindle device owners spend approximately $1,233 per year, compared to $790 per year for other customers. They do so because Kindle device owners buy over 50 percent more frequently than other customers.
Kindle device owners shop more widely at Amazon than other customers, as well. 51 percent report buying from seven or more Amazon departments, compared to 35 percent of non-Kindle device owners, with an average of 6.4 departments for Kindle device owners, compared to 5.5 departments for non-Kindle device owners (see chart).
Number of Amazon Departments Bought From, by Kindle Device:
Another way to look at Kindle Fire and Kindle e-Reader is as a portal to Amazon. Kindle Fire provides access to everything Amazon sells, while Kindle e-Reader has become the way that Amazon customers buy books, Amazon's original product line.
CIRP based these findings on its survey of 300 subjects who made a purchase at Amazon in the three-month period, ending November 15, 2013.
For additional information, please contact CIRP.