Author Topic: 75% of all US shoppers are Amazon Prime members  (Read 2031 times)

rcjordan

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75% of all US shoppers are Amazon Prime members
« on: April 17, 2024, 08:22:37 PM »

littleman

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #1 on: April 17, 2024, 10:28:23 PM »
I am curious where this goes in five years.  If I were to guess consumer habits aren't going to change that much, but the content on AMZ is going to morph more towards a mirror of AliExpress and direct sales from manufacturers.   Second prediction:  The direct from China pipeline will have some Chinese sites taking some market away from AMZ.

rcjordan

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #2 on: April 17, 2024, 11:18:25 PM »
>consumer habits aren't going to change that much

best headline of 2017:

Missing The Mark: Walmart Offers Cheap When People Want Easy

https://www.bloomberg.com/gadfly/articles/2017-04-12/walmart-offers-cheap-when-people-want-easy

(paywall. but the teaser is the point)

======

http://th3core.com/talk/water-coolerextra/the-tyranny-of-convenience/

The Tyranny of Convenience


ergophobe

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #3 on: April 18, 2024, 01:01:36 AM »
Bezos early on said that Amazon should not compete in price, but service and convenience. But what happens when the site is so awful that it isnít actually convenient to use? 

I think the decision to have their own delivery fleet is key. I am shocked when I get off the mountain and go to a town to see how many Amazon vans there are. I didnít even know about them until going for a run through suburbia while traveling my nieceís wedding 2 years ago. Now I notice them in every city.

Just today my BIL said he was going to order some items for tomorrow. It hasnít occurred to me that you could order something in the afternoon and have it the next day. Again, it made me realize that Amazonís warehouse network and delivery operation gives them a huge edge in urban and suburban areas that until recently was not obvious to me.

Anyway, it made me realize that no matter how shitty the website is, they have major market lock for other reasons.

Travoli

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #4 on: April 18, 2024, 01:34:14 AM »
>It hasnít occurred to me that you could order something in the afternoon and have it the next day.

We receive many items same day, or "overnight 4-8am" if ordered in the evening. Waiting on the porch when I wake up. It's an incredible machine.

Travoli

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #5 on: April 18, 2024, 01:50:33 AM »
>Chinese sites taking some market away from AMZ.

I've been hearing a lot about TikTok shop. Specifically, the algorithm is heavily favoring posts with the "buy now" button, so most creators are becoming salespeople to increase the chance to go viral. I'm hearing grumbling that it's ruining the app experience. I wonder if they're the biggest emerging threat to Amazon?

rcjordan

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #6 on: April 18, 2024, 09:18:31 AM »
Aliexpress (or perhaps their larger vendors) now offer US-based shipping.  Some products -3d filament, for example- offer "5-Day Delivery Free Shipping From United States to United States via Cainiao Large Parcel."   Other products -ex: smart home sensors- offer quick US shipping (14 days, IIRC) and a coupon reward if they are late.  But the Aliexpress site UI is a mess.  Even if you use it regularly it is easy to buy the wrong product.

In my world, Walmart has become irrelevant. I rarely see them mentioned in the context of online sales.

Brad

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #7 on: April 18, 2024, 01:38:52 PM »
>convenience

That and I don't like having my credit card details spread about online with many different retailers.

>delivery fleet

I get up really early and often sit on the front porch with coffee.  I've seen Amazon delivery people, using their personal cars, delivering stuff at 3:00AM. 

rcjordan

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #8 on: April 18, 2024, 01:56:48 PM »
>credit card details spread about online

Good point. We've discussed silo-ing several times and it was/is a major reason I buy with Amz even if the same item is cheaper elsewhere online (that doesn't happen often).  Aliexpress, Home Depot, & Ebay have paypal checkout, so I do use them on occasion as I think paypal provies a bit of a buffer between the merchant and my CC.  ...I *definitely* wouldn't have signed up with Aliexpress without paypal. 

ergophobe

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #9 on: April 18, 2024, 05:17:34 PM »
>> Tik Tok

A friend who was an early adopter (and is in his 80s by the way), says it has basically become the Home Shopping Network.

>> credit cards

This is a major consideration for me. Especially after I started working on e-comm sites and realized what percentage had no clue about PCI compliance and basic security. 

>> 3am

Different world. The delivery people who use their personal cars are OnTrac, which I call OffTrac. They only come once per week. So second day delivery takes 2-8 days. But since they deliver to the wrong address 10% of the time and cancel the weekly delivery of weather is bad, it can be 3 weeks to never for a package to arrive.

They are cheap so a lot of ďfreeĒ shipping goes via OffTrac. So even second day delivery is not really a thing unless you pay for the up charge for UPS/FedEx overnightÖ. Which is actually second day, not overnight. Nobody offers that except courrier servicesÖ maybe. Some oil-rich prince had his favorite wine courriered to the hotel for dinner once. Several hundred dollars :-)

So this infrastructure that has been built up in the cities just surprises me every time.

That said, I think online shopping and rapid delivery, even if not AS rapid, is a much bigger change for rural areas than it is for urban and suburban areas.

rcjordan

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #10 on: April 18, 2024, 07:24:05 PM »
It is a major change for rural areas but breadth of products available -particularly specialty products- is a major change for everyone. 

Here's a product I've purchased 3 times beginning in 2013.  Now, I could travel an hour or more to the closest metro area and I have no doubt that some supply house there has one.   Maybe I'd find it after visiting 100 of them and explaining to the counterman what I'm trying to find. Unless I'm extremely lucky, the search could take days.  So gas, meals, hotel room? --this thing would have a $200 hidden cost.
 
https://www.amazon.com/gp/product/B008OMKATW

Robert Manufacturing RM292 Series Bobby Series Brass Miniature Valve and Float Assembly, 1/4" Compression Wing Nut, 125 psi Pressure, 3/64" Orifice: Industrial Float Valves: Amazon.com: Industrial & Scientific

It's tiny, btw, about the size of your thumb.

ergophobe

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #11 on: April 19, 2024, 01:38:31 PM »
:-)

Very true.

Many of my online purchases are things I know I can get at Target or Home Depot. But a large number of my wifeís are probably not all in any metro area. She finds some new brush that an artist she follows loves and it is only available by direct mail order. It used be that if tou wanted to be up on things like this, you needed to subscribe to a magazine.

I know when I was looking for new computer equipment, camera gear or construction materials, I would buy magazines often mostly for the ads. My dad had two subscriptions to computer magazines for the university athletic department because it was the only way he could keep abreast of which stuff to buy for the office. That was a cost too.

On the other hand, the enshittification of Amazon means that, as people have said, you canít find any useful guidance since itís basically an ad auction. Which I guess was the same with the magazines, but improving on that was one of Amazonís big advantages

rcjordan

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #12 on: April 19, 2024, 05:06:17 PM »
>useful guidance

On desktop, maybe phones, there is a new-ish "Frequently returned" text block.  IMO, that's the ultimate review.  I've nuked 3 or 4 items from the cart because of it.

buckworks

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Re: 75% of all US shoppers are Amazon Prime members
« Reply #13 on: April 20, 2024, 11:24:59 PM »
>> Frequently returned

It's counterintuitive but negative reviews can actually improve profit margins ... because they reduce returns.

If I read someone else's negative opinion, I might or might not still buy the item, but if I do I have a clearer idea what I'd be getting and have decided that I could probably live with those flaws.

I have returned very few things over the years.