Bizrate Insights Finds That Over 40% of Shipping Club Members May Not Renew

Late Deliveries Could Cost Amazon Prime Almost 10% of Members

Feb 11, 2015, 08:30 ET from Connexity, Inc.

LOS ANGELES, Feb. 11, 2015 /PRNewswire/ -- Bizrate Insights, a division of retail marketing solutions firm Connexity (formerly Shopzilla), has found in a survey that 9.7% of shipping club members are considering non-renewal of their membership specifically due to late deliveries. At the largest shipping club, Amazon Prime, 9.6% of members are considering non-renewal because of late deliveries.

"Shipping club membership has grown significantly over the last few years, growing 36% year-over-year among Cyber Monday shoppers in 2014 over 2013," says Hayley Silver, VP of Bizrate Insights. "The growth rate has slowed when compared to 2013 over 2012, which was up 53% year-over-year among Cyber Monday online buyers. Listening to consumer sentiment in January 2015, there is dissatisfaction that may lead to non-renewal by over 40% of members – one quarter of which is specifically due to late deliveries."

Bizrate Insights, a division of Connexity, recently collected nearly 6,400 responses from online buyers about their participation in shipping clubs, late deliveries, and renewal intentions based on late deliveries. Among the other findings:

Overall Shipping clubs members:

  • 33% of online buyers report membership in a shipping club in December 2014
  • 28% had a free trial membership in December 2014
  • 43% may not renew: 73% of free trial members and 31% of paid members
  • Late deliveries is the specific reason members may not renew for nearly a quarter of all considering non-renewal

Amazon Prime members:

  • 28% of online buyers report membership in Amazon Prime; 26% of these Prime members reported having a free trial membership in December 2014
  • 21% agree that they received at least one Amazon Prime order late.
  • 31% agree – 50% more – that some of their items ordered through Amazon Prime arrived in more than two days
  • Generation Y is far less forgiving: 26% report at least one Amazon Prime order arriving late and 35% report that some of their Amazon Prime items arrived in more than two days.
  • 41% may not renew

Shipping clubs members excluding Amazon Prime members:

  • 38% had a free trial membership in December 2014
  • 57% may not renew; approximately one-fifth of which is specifically due to late deliveries (10.5% of members).

This Shipping Clubs and Late Deliveries Study was conducted via the Bizrate Insights survey platform and offered to online buyers immediately after purchasing from the Bizrate Insights Network of over 5,000 e-commerce retailers in the US and Canada. Amazon.com is not a member of the Bizrate Insights Network. Data from the study was collected from 6,396 online buyers from January 7-14, 2015, with a margin of error of plus or minus 1.2 percentage points at the 95% level of confidence for those represented in the report. 

Connexity Inc. (http://www.connexity.com) is a technology driven marketing solutions company that leverages almost twenty years of ecommerce expertise to enable retailers and brands to understand their consumers better, acquire new customers at a lower cost, and increase sales.  For retailers, Connexity offers a range of marketing solutions including search marketing, syndicated product listings, targeted display advertising, and the Bizrate Insights customer feedback program. For marketers and their agencies, Connexity delivers targeted audiences on any device through a programmatic media buying platform.

Headquartered in Los Angeles, the company operates sites and business services in the United States, the United Kingdom, France and Germany including Bizrate, Beso, Shopzilla, Retrevo, TaDa, PrixMoinsCher, and SparDeinGeld. Connexity, Inc., formerly Shopzilla, Inc., is owned by Symphony Technology Group (STG).

George H. Simpson
203.521.0353
george@georgesimpson.com

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SOURCE Connexity, Inc.



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