Amazon out-selling Target and Walmart online
Reports show that Amazon’s large internet retail presence, along with their Amazon Prime Now delivery service, has started to edge out big-box competitors Target and Walmart in the online space, according to Forbes.
Market research consultancy Millward Brown Digital analyzed the buying patterns of more than 2 million online consumers, finding that Prime membership narrows the field of retailers a shopper is willing to consider.
The analysis found that less than 1% of Prime members are likely to consider other online sources for goods during that online session, including Walmart.com and Target.com.
Prime members are also willing to spend more on Amazon online – up to $1,500 each year. Non-Prime members spend an average of $625 per year. For more break-downs from the study, visit the Forbes article.
Amazon Prime costs $99 per year (less for students) and includes free two-day shipping, access to Prime Instant Video, Prime music, Prime photos, and the Kindle Owners’ Lending Library. It also includes Prime Now delivery service in Baltimore, Miami, Brooklyn, Manhattan, and Dallas. Prime Now users can be delivered in-stock materials in one- or two-hour delivery windows for a small fee.
It is worth noting that Amazon has never revealed how many Prime subscribers they have.