Attention Amazon Competitors: Target The 35 Million Ex-Prime Members

Amazon’s stranglehold on the American consumer has been well-documented, with Prime reportedly having as many as 80 million subscribers. But what isn’t recognized is that as many as 35 million shoppers have quit using Prime at some point, according to data from Prosper Insights & Analytics.

Pam Goodfellow, Principal Analyst and Consumer Insights Director at Prosper Insights & Analytics, revealed in a Forbesarticle that the majority (78%) of consumers who have given up Amazon Prime were testing out trail memberships. Only 22% had invested in a paid subscription.

The Prime fees, $99 annually or $10.99 per month, are certainly a barrier to many potential members. Consumers gave various reasons for leaving the service, including:

  • Unable to afford the price;

  • Seeing the price as an unnecessary expense;

  • Not buying enough to justify the cost; and

  • Not finding value in the other content included in the Prime package.

“There are competitors coming and offering free shipping without a subscription,” said Goodfellow in an interview with Retail TouchPoints. “Walmart offers free two-day shipping with a $35 order, and Target offers free shipping and returns with a $35 purchase. That’s quite a value proposition for a household that feels $99 is just too much for their budget.”

Goodfellow noted that free shipping is still far ahead as the top reason shoppers subscribe to the Prime service….