Price May Prove Prime Reason For Losing Members
As this column turned the spotlight on to Amazon’s Echo Look last week, a US-based research outfit was highlighting just how successful the internet giant has been in hooking families into its services.
Consumer Intelligence Research Partners reported that Amazon now has an estimated 85 million members signed up to Prime in the States alone.
Given that there are about 126 million households over there and that it makes no sense to have multiple memberships in the same home, it could be assumed that about two thirds of Stateside families are Prime members. (Unfortunately, no figures about UK membership are currently available.)
Prime is marketed as a club with a portfolio of membership benefits.
The next day delivery service on a wide range of products and free access to a selection of box sets and films are the best used of these.
However, it also gives free access to a huge library of music to stream and books to read as well as unlimited access from anywhere, photo storage.
However, the days when Amazon purchases represented best value appear long gone.
The last three significant items that I have purchased have all been available at better prices in local retail outlets. Just this week I bought a microwave for £55 at a local store rather than pay Amazon £69 to deliver. For a company that started just 23 years ago this month, as an online bookstore, Amazon’s growth and market penetration represent phenomenal success.
Yet, if its investments in its membership freebies mean that it can no longer compete on price on the core business, those Prime members could soon be moving elsewhere.
