Once a seemingly indomitable force in the 21st century retail arena, Amazon seems to be showing the world that its armor is not without a few chinks.
Last month, after revealing less than stellar earnings for the third quarter, the company’s stock took a 7 percent tumble. Founder Jeff Bezos was knocked from his lofty perch atop the world’s richest list, relinquishing the title momentarily to Microsoft legend Bill Gates.
While ebbs and flows in a volatile retail market are to be expected, there is evidence that Amazon’s once unshakable resonance with consumers is starting to falter. New data from digital retail analytics firm First Insight supports an assertion that the company could truly be “past its Prime.”
The frequency with which consumers are shopping on the site each month is steadily dropping, the report’s analysts said. In 2017, the vast majority (80 percent) of Amazon Prime members made purchases at least six times per month. In 2019, the number of consumers that copped to using their Prime accounts with that level of frequency was cut in half. In fact, this year, 40 percent of members say they shop the site just once or twice a month, if they order anything at all.
Amazon Prime membership on the whole is dropping year over year, according to First Insight. Membership reached its apex in 2018, with nearly 60 percent of Amazon shoppers paying for Prime. A year later, that robust contingent has dropped to a little over 55 percent.