Amazon Prime is an increasingly vital aspect of the Amazon business, according to a recent report.
It looks at US trends predominantly but it looks like Prime is of clear and commercial importance to Amazon sales.
Why is this important to UK Amazon sellers?
1) Where the US leads, the UK follows. So such strong growth in Prime Stateside is what Amazon wants to see here in the UK.
2) Prime buyers are good news for UK FBA sellers.
3) It’s all about return buyers.
The key insights are on page 4 of the full Cowen report.
It says: “Below we show the total AMZN purchaser footprint over time by Prime and non-Prime purchasers. Prime purchasers now make up ~46% of total Amazon purchasers (new record high) vs. ~37% a year-ago, and above the 6 month moving average (~42%).
In May, Prime purchasers topped the high water mark set in Jan. ’15, and were up ~33% y/y, a meaningful acceleration from April (+23% y/y), and up from the 6 month moving average of +25% y/y. Conversely, non-prime purchasers declined ~10% y/y, the group’s 13th consecutive month of y/y declines. On a sequential basis, Prime purchasers grew ~6% m/m, while Non-prime fell ~11% m/m.”
One Response
I’m surprised. I wonder what is driving this growth? I cancelled my own Prime membership because I had no use for the video streaming and increasingly I found that many of my purchased items were not eligible for “free” delivery.
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