Britons love subscription delivery schemes, especially Amazon Prime - report
As Amazon’s Prime day kicks off on Tuesday, a new Mintel study shows that paid delivery/subscription services are becoming ever more important. Free delivery or extra delivery options count as the number one (62%) attraction for paid subscription/delivery pass members.
Overall, nearly four in 10 Brits (39%) have now signed up for these subscriptions, including Amazon Prime.
And that growth looks set to continue with the young in particular very fond of them. The research specialist said 54% of 25-34s have signed up to a paid delivery/subscription pass and Amazon Prime ownership increased from 23% in 2018 to 31% in 2020. Almost a quarter (23%) of over-65s are members too.
As well as the popularity of free delivery, Mintel said that 49% of consumers like the chance to access better delivery times/slots. Free returns are the third most important choice (43%), increasing in popularity by 11 percentage points since 2018 (32%). In fact, that's now considerably more relevant than personalised offers (23%) and exclusive products (23%).
Mintel added that the pandemic has made customer loyalty even more important and delivery passes are a key part of this.
“Consumers are increasingly expecting products and services to be delivered to them quickly, wherever they are,” it explained. “In fact, same day delivery is one of Amazon’s main competitive advantages over other online rivals, and while its competitors offer a same-day service, this is usually an extra add-on. For Amazon Prime, the attraction goes beyond fast delivery service; it is access to a vast digital library of streaming entertainment, including Prime Video, Prime Music, and Prime Reading, that has allowed it to excel.”
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