Consumer Edge Data Shows AMZN is Gaining Share While Overall Online Spending Slows
Amazon CEO Andy Jassy, on Wednesday, May 21, commented that Amazon has not seen waning demand due to tariffs. Consumer Edge U.S. transaction data shows that while overall online spend growth has slowed, Amazon has fared much better, picking up meaningful share in recent weeks. Total U.S. online spend growth (YoY) decelerated from +7% on April 15th to +4% on May 13th as stock-up demand faded and consumers began to pull back. Amazon, however, appears to have benefited from trade tensions, including the elimination of the de-minimis exemption (even though the tariff rate was lowered), and the subsequent decline in Temu and Shein sales.
The e-commerce behemoth gained share at the beginning of the year and the end of March, corresponding with its New Year Now You and spring sale promotions. The largest share gains, however, have been in May, with Amazon capturing an additional 200bps of the U.S. online market. It remains to be seen whether Amazon can maintain its share gains as the reduced China trade tariffs went into effect on May 14th, potentially signaling a resurgence of cheap Chinese imports during the 90-day pause.
Management also noted that the decline was driven by a 2.4% drop in traffic and a 1.4% decrease in average ticket. Consumer Edge Cohort data reflected these dynamics, as growth in average spend per customer decelerated compared to Q4 across every age cohort. While shoppers under 35 maintained relatively flat year-over-year spending, all older age cohorts experienced declines. This age disparity may reflect younger consumers’ greater tendency for digital shopping as Target experienced growth driven by same-day delivery through Target Circle 360 in Q1.
As consumer behavior continues to evolve in response to macroeconomic pressures and shifting trade policies, Amazon’s ability to capture incremental share amidst a broader slowdown underscores the strength of its value proposition and strategic agility. As we head into the second half of the year, monitoring Amazon’s resilience in the face of renewed competition and changing consumer demand will be key to understanding the trajectory of U.S. ecommerce. Leverage Consumer Edge transaction data to stay on the pulse of Amazon and other ecommerce trends.
About the Authors
Harsh Masher is an Insights Analyst for the CEIC.
