35 Million Consumers Quit Amazon Prime
New analysis from Prosper Insights & Analytics reveals that while Amazon Prime memberships continue to grow, an estimated 35 million consumers have quit Prime. One of the top reasons given for ending their Prime subscription is the $99 yearly price tag (or more if you pay per month). Some former users stated they couldn’t afford the annual fee or weren’t buying enough to justify the cost. Interestingly, Prosper’s Composite Shopper Preference Index, an aggregate of the major merchandise categories in which a particular retailer competes, reveals that former Prime members are 23 percent less likely to shop Amazon than adults in general, and instead show an above-average preference for competitors Target and Wal-Mart.
Total Retail’s Take: At the massive scale that Amazon operates at, perhaps a loss of 35 million Prime members — still a whole lot of people — isn't as big of a deal as one would think. Consumer interest in Prime is still alive and well. Forty-four percent of consumers are Prime members, according to Prosper ‘s Composite Shopper Preference Index, representing a 30 percent increase in members year-over-year. Furthermore, I would expect that number to increase as we inch closer Amazon Prime Day as well as the holiday shopping season.