RetailWire reports that a new survey of 1,000 consumers conducted by the retail data analytics firm, First Insight, has found that Amazon doesn't have the hold on consumers in the United States that it once had. The survey is in its third year, and in 2019, it found that 55% of those surveyed prefer shopping at Walmart. That is an increase, up from 47% in 2018. The number of those who prefer Amazon went down from 53% in 2018 to 45% now.
Greg Petro, First Insight CEO, told CNBC, "The excitement of the Amazon box coming to your house is kind of dwindling off. I think the novelty of Amazon is wearing off."
The survey found that the frequency at which consumers shop on Amazon is also going down. Back in 2017, 80% of those queried said they shopped on Amazon 6 times or more per month. Today, only 40% gave that same answer.
With the number of Amazon Prime memberships estimated to be more than 103 million in the U.S., the survey found the e-commerce giant to be losing members. In this year's survey, 52% of those surveyed were founded to be Prime members, a loss of 7% compared to last year's survey (59%). There are no other statistics regarding Prime memberships, but Amazon has taken a couple of steps to give value to Prime members if they remain or sign up.
Free Grocery Delivery
Just last week, Amazon announced it would be giving free, two-hour delivery of groceries from Whole Foods as part of the $119 annual subscription program. Amazon also announced in April 2019 that they would be investing $800 million to cut the time it takes to get deliveries to Prime members from two days to one day.
Wolf Of Wall Street?
The online retail giant reported that their shares were down in the third quarter, showing earnings of $4.23 per share, down from $5.75 last year. This created some uneasiness in the investment world, even though some financial experts saw it as more evidence of Amazon trying to buy market share – something the company has done in the past.
Jeff Bezos, founder and CEO of Amazon stated that, “We are ramping up to make our 25th holiday season the best ever for Prime customers — with millions of products available for free one-day delivery,” said Mr. Bezos in a statement. “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers.”