Breaking Stories

New Report Shows Impact of Amazon Prime, Walmart+ on Consumer Spend

Membership-based shopping services have swelled in popularity in the past few years. Amazon Prime, in particular, has become a significant part of the retail landscape, with PYMNTS’ research finding that roughly two-thirds of United States consumers have Prime memberships. Other mass retailers, including heavyweights such as Walmart, have responded to consumers’ enthusiasm by entering the shopping subscription landscape themselves.

As the market has grown saturated, however, these retailers have seen their numbers plateau, with memberships to shopping subscriptions dropping slightly during the past year. Most consumers do not want to sign up for every service. Instead, they want to pick one or two that deliver the features and value that resonate with their preferences.

The Benefits Of Membership: Mass Retailers And Subscription Services examines the popularity of these services, how membership affects the way consumers shop and the benefits of each shopping subscription. This PYMNTS report draws from a census-based survey of 2,129 U.S. consumers that explores subscription-based shopping trends, the retailers with which shoppers spend the most amount of money and the motivations they have for obtaining and using different memberships.

More key findings from the study include:

• Shopping memberships are very common, and Amazon Prime leads the way. Most American consumers value shopping memberships, and several retailers’ services are leading the pack. Approximately 166 million Americans, or 64% of the adult U.S. population, are Amazon Prime subscribers.

• The total value of purchases made by subscribers is double that for nonsubscribers in all cases, except for Walmart. Retail membership is a strong indicator that a consumer will spend more with the brand to which they are subscribed. This trend does not hold true for Walmart+ subscribers, however. These members spend just 15% more than nonmembers each month when shopping online, and they also spend 10% less than nonmembers when shopping in-store.

• Shopping behaviors vary across mass retailers. Consumers’ decisions about whether to shop online or in-store depend largely upon which retailer they are using. Unsurprisingly, 98% of Amazon Prime shoppers conduct their transactions online. Both Sam’s Club and Costco shoppers, on the other hand, are far more likely to shop in-store. Eighty-four percent of Sam’s Club customers shop in-store and 88% of Costco customers say the same. Walmart has observed similar trends, with 85% of its shoppers making their purchases in-store.

To learn more about shopping club memberships and related trends, download the report.

What is your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *