Amazon Prime Audience: Why Retailers Should…

Amazon Prime Audience: Why Retailers Should Take Note

Amazon Prime Day came to Australia for the first time this year. One month after the dust has settled, Hitwise takes stock of how Prime Memberships have performed, who prime early adopters are and their impact on the retail landscape.

Prime ‘sign-ups’ spike 377% on Prime Day, but the rise was short-lived

During the 36-hour period of Prime Day between the 16th and the 17th of July, visits to Amazon Prime Pages spiked 324% and sign-ups to Amazon’s 30-day free trial surged 377%, compared to the previous day.

Whilst there was an expected surge of visitors and sign-ups during the event, total visits to Prime pages have since dropped to pre-Prime Day levels, immediately following the end of the event.

As Amazon wants to expand their loyalty membership in Australia, Hitwise data shows that the hype and demand for Prime were short-lived.

Graph 1

For a free trial, only 8.8% of Prime Browsers went on to sign up

Key to Amazon’s Prime Day strategy was to transfer customers from their .com domain to their .com.au domain. Over a four-week period (pre and post-Prime Day), Amazon was able to attract 1.8 million people to their AU site.

Of this audience, almost 150,000 people went on to browse Amazon Prime products. But despite Amazon offering a free 30-day trial and slashing the price of their annual subscription, only 8.8% of Amazon Browsers (or 0.1% of the Australian online population) went on to sign up for Prime.

GRAPH AU 2

But Prime Early Adopters are affluent and avid online shoppers

Although Amazon may have hoped for a higher uplift in Prime members, the ones that did sign up, i.e. “Early Adopters” are affluent, techy and online-savvy.

“Early Adopters” are 56% more likely to be 18-24 yo or 22% more likely to be 55-64 yo, compared to the Australian online population. Members of this group are also 21% more likely to have a household income between the $100,000 – $119,999 range.

The “Early Adopters” are avid online shoppers as well. They are 55% more likely to shop online several times a month; 75% of which prefer shopping on mobile devices. They care less about retailers having a physical store presence, but are driven by sales and promotions.

Early Adopters

Electronic Retailers need to take note of the “Early Adopters”

Where this particular audience shops online may prove to be a key battleground in the months to come.

Prime Early Adopters interact a lot with gaming and streaming sites, including Amazon brands such as Prime Video and Twitch. They are also highly engaged with other top electronic retailers, including eBay, JBHifi and EB Games. In particular, 65% of Prime Early Adopters also visited eBay’s site over this four week period.

In contrast, Early Adopters are less engaged with fashion retailers. The Iconic, ASOS and David Jones saw smaller overlaps of less than 14%.

Graph 4

Amazon will no doubt make another push for Prime before the year’s end, particularly with Cyber Week and Christmas sales coming up. Although the “Early Adopters” are a relatively small audience, retailers and brands need to take note.

With eBay launching their own eBay Plus membership, Prime poses both a threat and opportunity. Retailers and brands need to identify why consumers are turning to Amazon. In eBay’s case, they can respond with rival promotions and loyalty offers. For fashion retailers, they can hold their ground (that is until Amazon makes their next move in Australia).

For more audience insights or how Hitwise can support your retailer strategy, contact us here.