Amazon started as online book store and has grown to be the worlds largest online retailer.
One third of British online shoppers use Amazon Prime
According to a survey by Retail Week, Amazon’s Prime is now used by one third of UK adults. The ICM study reveals that something like 19 million people (that’s roughly 30% of UK adults) use Amazon Prime.
An Amazon Prime subscription, remind yourself, in the UK costs £79 per year or £7.99 a month and includes a stack of benefits. There’s speedier shipping plus music, videos, books and much more.
Take a look at the various graphs from ICM.
Obviously, Amazon Prime shoppers are more loyal and spendier than the average Amazon shopper. They are also able to shop with sellers who use FBA more easily. That should be the biggest insight for retailers when it comes to this report. Prime is here to stay and if you aren’t using it then you may be losing out. You don’t need to hold all your lines and inventor with FBA but it could be worth being strategic. What are your core sellers? What do buyers like a lot? What could sell more if you shipped with FBA? It’s clearly time to revisit and reassess your FBA assumptions.
This figure shows how often buyers use Amazon to shop and how loyal Prime users are. It speaks for itself.
From a retailer perspective there are two key benefits of great Prime loyalty and enthusiasm. Firstly, it helps FBA sellers. If your goods are in FBA, then they’re going to be more likely to be bought by Prime members. And there is also a perceived benefit that FBA sellers will also bob up more easily and win the Buy Box.
What is uncontroversial to say too, is that these numbers are astonishing and restate how Amazon is smashing it out of the ballpark right now. Can anyone compete with Amazon? Is eBay dead in the water? Is the dominance of a single player actually a good thing for sellers?
And Amazon Prime Day could be a really big deal. But when is it?
I am still wondering why customer pay £70 a year to subscribe to prime as the item they bought are 20% more expensive than the non FBA one ?
they dont know that, they’re prime, that means best and cheapest and i dont need to search for deals any more because prime.
I, for one, would happily pay £70 a year to be Optimus Prime.