by Hayley Silver, Vice President
with Cory Mitchell, Manager
In light of Amazon’s news last week that the company is considering a price increase of $20 – $40 for its popular Amazon Prime membership, Bizrate Insights pulsed online buyers to find out “how much is too much”.
Shipping club membership has grown 50% year-over-year
According to Bizrate Insights most recent study of shipping club membership among online buyers, 21% are a member of a shipping club, 96% of which belong to Amazon Prime. This is up from 14% in November 2012.
Prime members are price sensitive
Initial findings, based on 198 Amazon Prime members, were incorporated into an article by Alistair Barr published in USA Today Monday, February 3rd (http://www.usatoday.com/story/tech/2014/02/03/amazon-prime-price-hike-cancel/5183637/).
Continued collection to 858 Amazon Prime members reaffirmed the initial results – 47% of Amazon Prime members believe the current price of $79/year is too high and would not renew at that price point, and an additional 38% would not renew their membership if fees increase by just $10 – $20.
About the Study
The Bizrate Insights Shipping Club Study was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the US and Canada. Data from the Shipping Club Study was collected from 6,471 online buyers from January 31st – February 4th, 2014.
For over 12 years, Bizrate Insights has helped retailers listen to their customers in a way that is fast and measurable, resulting in insights, action, conversation, and customer loyalty. The Bizrate Insights customer feedback and ratings platform allows retailers to collect seller ratings directly from verified customers.
Standard ratings are published across the leading comparison shopping site, Bizrate.com, and syndicated across the web’s largest search engines to help drive conversion and traffic. Collecting over 26 million surveys annually, Bizrate Insights is one of the largest sources of consumer-generated review content in the world, delivering actionable insights and valuable shopper data to key decision makers in e-commerce. Bizrate Insights is used by over 40% of Internet Retailer Top 500 retailers, as well as thousands of smaller boutiques.
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For more information, please contact:
Vice President, Bizrate Insights
12200 W. Olympic Boulevard Suite 300
Los Angeles, California 90064