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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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