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BizReport : Ecommerce archives : February 12, 2015

Study: Slow shipment may push Amazon Prime members to cancel

Shipping clubs have grown quickly in popularity; about one-third (33%) of online shoppers surveyed recently said they belonged to a shipping club. Of those about 28% reported having a free trial to that program in December of 2014. The surprising thing is that about half of those who are currently members or using free trials to these clubs say they won't renew membership.

by Kristina Knight

Connexity's Bizrate Insights has released a new study that indicates online shipping clubs - like Amazon Prime, in which customers pay a yearly fee to get free shipping on items purchased online - may have a big problem on their hands. That problem: holding on to their customers. According to their data, late deliveries are causing nearly 10% (overall) of shipping club paid (7%) and trial (18%) members to reconsider paid renewal of their membership.

"Shipping club membership has grown significantly over the last few years, growing 36% year-over-year among Cyber Monday shoppers in 2014 over 2013," says Hayley Silver, VP of Bizrate Insights. "The growth rate has slowed when compared to 2013 over 2012, which was up 53% year-over-year among Cyber Monday online buyers. Listening to consumer sentiment in January 2015, there is dissatisfaction that may lead to non-renewal by over 40% of members - one quarter of which is specifically due to late deliveries."

Some interesting take-aways from the Shipping clubs and Late Deliveries Study include:

• 57% of shipping club members, outside of Amazon Prime, 'may not renew'; Of those who may note renew, 1 in 5 say it's because of late deliveries
• 41% of Amazon Prime members say they 'may not renew'
• Of Amazon Prime members, 31% say at least 1 item arrived after two days
• Overall shipping club members 73% of free trial members and 31% of paid shipping club members say they may not renew
• Approximately one quarter of those who may not renew state late deliveries as the reason they'll opt out

Image via Shutterstock

Tags: Amazon Prime, Connexity, ecommerce, ecommerce shipping, ecommerce trends

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  • Edward Ryder

    I know some of these posts are over 2 years old.However in that time Amazon has gotten worse with deliveries for prime members.They say your pack will be arriving by 8pm and when time gets to 8pm with no package,the immediately change arrival time to up to 3 more days,and basically tell you ,youll get it to you when ever.I will no longer waste my money on Prime(Amazon Video isnt worth keeping either).Walmart has shown to be quicker.Wrote Amazon a week ago askingthem to explain why my packages are constantly late,no reply back or credit.I am done Amazon,youve lost a Customer who used to spend close to 5000 dollars a year on goods.Now I am spending my money on places that dont charge a membership.I would rather save on membership and wait a few more days,since I am doing that with Amazon now anyway.Why pay over 100 dollars a year..

  • DessicatorX

    I agree as it takes at least 5 business day for me to get anything from Amazon these days. I live not more than 40 miles from a fulfillment center.
    This is why I do not order anything from Amazon unless I can not find it anywhere else.

  • rachel441

    It used to take 2 days, period, to get something with Prime, now they say 2 business days (but really more like 3-4 business days). I order something on Thursday and I don't get it until Monday or even Tuesday, and it's been like this for nearly everything I've ordered over the past month or so. Used to I would have it in my paws by Saturday. I've ordered like 60 things with Prime in the past year and have always raved about how fast stuff gets here. Now I'm just irritated and have started buying stuff elsewhere, whereas I used to be happy to pay the higher prices for Prime items just because of the fast shipping.

  • Kc

    An ebay seller in china can now get it to the states quicker than amazon so its time to shop ebay and short the amazon stock. Sad that with ebay you get quicker shipping (amazon now takes 5 days just to get it in mail !) and better seller ratings and no auto sales tax. Product reviews are the one place amazon beats ebay now but they'll probably figure that out too. Embarassingly slow shipping is going to kill them and my stock...

  • dhectorg

    I have been contemplating boycotting Amazon for a while now, but I think I'm finally there. My last order took 5 full days to even ship and another 5 days to deliver, which is the norm now. It's simply unacceptable when so many other retailers are providing so much better service. I will not buy from Amazon anymore unless I can't find the item elsewhere. I can no longer allow myself to reward such shady behavior with more of my business. There are plenty of online retailers that provide same day shipping at a low cost or sometimes even free. Amazon has completely lost its way and I expect far better service for my hard earned money.



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