According to Mintel, around four in ten (39%) Brits have signed up for a paid subscription scheme or delivery pass. This means that they pay a monthly fee to get free delivery and other extras. Amazon Prime is the most popular paid subscription service.
The delivery pass seems quite popular among younger shoppers. 54% of Brits between the ages 25-34 have signed up for such a subscription program. While the popularity of these passes peaks among the young, almost a quarter (23%) of over-65s are members too.
Amazon Prime continues to be the absolute leader among the UK paid subscription schemes. Three in ten (31%) Brits are now members, up from 23% in 2018. Currently, Amazon Prime accounts for nearly eight in ten (79%) consumers who have any kind of paid subscription.
The most popular benefits attracting consumers to paid subscriptions are still the ones related to delivery. 62% of subscription members choose free/extra delivery options. Meanwhile, 49% favor better delivery times/slots. Free returns are the third most important option (43%), increasing in popularity by 11% since 2018. Currently, it is considerably more relevant than personalized offers (23%) and exclusive products (23%).
Armando Falcao, Mintel Retail Research Analyst, said: “As a result of the COVID-19 pandemic, retailers are facing unprecedented challenges and customer loyalty has become more important than ever before. While a considerable number of new paid subscriptions have emerged, Amazon Prime continues to gain popularity. It is essential that the other players look at the online giant’s scheme as a benchmark and understand how they can incorporate some of its competitive advantages into their own offerings."
“Consumers are increasingly expecting products and services to be delivered to them quickly, wherever they are. In fact, same day delivery is one of Amazon’s main competitive advantages over other online rivals, and while its competitors offer a same-day service, this is usually an extra add-on. For Amazon Prime, the attraction goes beyond fast delivery service; it is access to a vast digital library of streaming entertainment, including Prime Video, Prime Music, and Prime Reading, that has allowed it to excel", Armando Falcao added.
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