NEW YORK – Despite a climate of economic anxiety and rising concern over prices, U.S. consumers are demonstrating remarkable loyalty to Amazon (NASDAQ:AMZN), according to a new survey of approximately 700 shoppers conducted by investment firm Jefferies.
The findings reveal a resilient, though cautious, consumer base, with Amazon’s core strengths—Prime membership, selection, and shipping speed—creating a powerful “moat” that competitors are struggling to breach.
According to the Jefferies note, a striking 62% of shoppers spent the same or more on the platform over the past three months. This spending persistence comes even as 80% of those surveyed expressed concern about the impact of tariffs on the prices of imported goods.
Signs of Caution Emerge
However, the resilience is not without its cracks. The survey also unearthed clear signs that consumers are becoming more deliberate with their spending. Jefferies noted that 31% of respondents are spending less than they were three months ago, and 34% are shopping less frequently.
This indicates that while very few are abandoning the platform entirely—only 3% said they stopped shopping on Amazon—a significant portion is actively managing their budgets. Looking ahead, if inflation were to worsen, 45% of shoppers said they would reduce their Amazon spending rather than defect to other retailers, highlighting the platform’s stickiness.
The Power of Prime and Prime Day
Amazon’s key loyalty driver, its Prime membership program, continues to dominate the retail landscape. A massive 73% of survey participants reported being Prime members, a figure that dwarfs competitors like Walmart+ (26%) and Target Circle (22%).
While the majority of members (57%) intend to keep their subscriptions, 19% are considering canceling—a figure slightly higher than that for Walmart+ and Costco (NASDAQ:COST).
Amazon appears poised to combat this potential churn with its upcoming Prime Day event. Running for an extended four days from July 8–11, the shopping holiday is expected to be a major catalyst for new sign-ups and re-engagement. Jefferies believes the event “should prove more impactful” this year, particularly in attracting deal-seeking younger shoppers.
Dominance in Key Metrics
The survey reinforces Amazon’s command over the core pillars of online retail. When asked to rank retailers:
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Shipping: Amazon was the top choice for 72% of respondents, versus just 13% for Walmart (NYSE:WMT).
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Selection: Amazon again dominated with 74% of the vote, compared to 13% for Walmart.
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Price: While Walmart took the top spot with 46%, Amazon remained a strong second at 37%, demonstrating its competitiveness even in its perceived weaker area.
Based on this consumer resilience and market dominance, Jefferies maintained its Buy rating on Amazon stock. The firm noted that, from a valuation standpoint, the stock currently trades at an approximate 30% discount to its 10-year average EV/EBITDA, suggesting potential upside for investors.
