RetailTechNews’ weekly roundup brings you up-to-date research findings from around the world. In this week’s edition: The Amazon Business American Express Card; Amazon Is the Favourite for Teens; and Prime Creates Loyalty, but Membership Slowing.
The Amazon Business American Express Card
American Express and Amazon have introduced the Amazon Business American Express Card designed to empower small businesses to make the best financing choice for their business, purchase by purchase.
Card members can choose between percentage back rewards, or instantly qualify for an interest-free payment term. Full card benefits include:
– 5% back or 90-day interest-free payment terms for eligible Prime members on U.S. purchases at Amazon Business, Amazon Web Services, Amazon.com, and Whole Foods Market
– 3% back or 60-day interest-free payment terms for non-Prime customers on U.S. purchases at Amazon Business, Amazon Web Services, Amazon.com, and Whole Foods Market
– 2% back on purchases at U.S. restaurants and gas stations, and on wireless telephone services purchased directly from U.S. service providers
– 1% back on other eligible purchases
– Access to line-item details on purchases made on Amazon Business (U.S.) such as cost per item and quantity, giving businesses more visibility into their business buying.
“We know our small business customers want the ability to choose a payment tool that works best for their business at any given moment; and they want it to be simple and fast so they can spend their time focusing on running their business efficiently”, said Courtney Kelso, head of U.S. commercial card solutions at American Express. She continued: “We are working in partnership with Amazon Business, a destination offering millions of U.S. small business owners a convenient place to purchase everything for their company, from office supplies to IT products.”
Amazon Is the Favourite for Teens
Nearly half (47%) of teens name Amazon their favourite shopping website, according to Piper Jaffray. The share is up 3% from 44% this spring and leads other competitors by a wide margin. The second ‘most preferred shopping website’ is Nike.com at 5%.
More teenagers are using Prime membership, too, according to the survey. Prime adoption is at 74%, up from 66% last year. This is in line with the rise of Prime membership penetration across American households. Piper Jaffray estimates that a little over 80 million households are Prime users, up from a high of 70 million in the spring. Another research firm, Consumer Intelligence Research Partners, has estimated that Amazon Prime reached 97 million U.S. members in September.
Piper Jaffray’s report also broke down the popularity of Amazon based on household income. It found that the Seattle retail giant is the favourite among teens from upper-income families (with an average income of USD$101,900 [£79,500]), it also saw strong growth in the USD$41,000-USD$68,000 (£32,000-£53,000) household income bracket.
Amazon has made significant efforts to attract future consumers. The Prime Student programme, launched in 2010, offers free shipping and access to streaming video at a discounted rate.
To facilitate shopping on its site, Amazon Prime allows teens to set up their own logins independent of their parents’ accounts ;and parents can choose to review their items before allowing the purchase.
Prime Creates Loyalty, but Membership Slowing
The difference between purchases made by Amazon Prime members and regular customers is widening, according to a new report by Consumer Intelligence Research Partners.
While Prime members buy an average of USD$1,400 (£1,100) a year worth of stuff on Amazon, regular customers only spend USD$600 (£470), the study found. Prime members are spending USD$100 (£80) more than a year ago on average, while others are spending USD$100 less on average.
It shows that Prime is becoming more important to Amazon, though CIRP also reports that the company’s membership growth is slowing. There are a total of 97 million Prime subscribers in the United States. Over the past 12 months, that number only grew 8%, which is the slowest rate recorded since CIRP started tracking Amazon Prime subscriptions in 2012.
While many still associate Prime solely with its two-day-shipping guarantee, it also offers things like video and music streaming. There are also some items available only to Prime members, creating additional value. The value of Prime has risen steadily over the years as Amazon has added these benefits.