Amazon has not only become America’s dominant retailer, but a new survey finds that one in four households pay an extra $99 a year for special “Amazon Prime” accounts.
“This suggests the online retailer’s premium service has altered how consumers shop – just a decade after its launch,” said the research from the NPD Group and CivicScience.
Explained Marshal Cohen, NPD’s chief industry analyst, “Some say retail is changing. I say retailing has already changed. And retailers need to catch up.”
NPD found that over 24 percent of American Households have at least one Amazon Prime account. Prime, said NPD, offers free deliver to those who pay a $99 annual fee. They also get special offers.
What’s more, some 30 percent haven’t heard of Prime, meaning that Amazon has lots of room for growth.
“Do we expect it to grow? Yes. The value proposition for Amazon Prime is pretty spectacular from a consumer point of view,” said Don Unser, group president of NPD’s Retail Business Group, in a release.
Amazon doesn’t disclose subscription numbers, but a one estimate cited by NPD is that Prime has 44 million members.
The company’s founder, Jeff Bezos, recently purchased the Washington Post.
Paul Bedard, the Washington Examiner’s “Washington Secrets” columnist, can be contacted at [email protected].
