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Amazon Prime’s Major Impact on Retail Competitors and Consumer Shopping Behavior

Jason Caine, writing for the Compete Pulse Blog, discusses the impact of Amazon Prime on both consumer purchasing behavior as well as on the responses of online retail competitors.

Caine presents Millward Brown Digital research which shows that the increase in Amazon Prime membership means that an increasing number of shoppers at other retailers are also Prime members.

Research by The Compete Panel of Prime vs. Non-Prime members’ cross-shopping behaviors demonstrates Amazon Prime members consider a narrower set of retailers when shopping online.  In fact, less than 1% of Prime members are likely to consider any of the other popular online retailers during the same shopping session.  In addition, 63% of Amazon Prime members convert on the site during the same shopping session.

The responses of Amazon Prime’s online retail competitors have included price match guarantee offers and the launch of subscription programs. Amazon Prime’s success has emphasized the need for competitors to  focus on the consumers’ e-commerce experience, to lower consumer purchase barriers, and to improve their conversion rates.

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