News Trade12 - Amazon Prime Gains Strength, Poses Threat to Target, Walmart

Official Website

  • Trade12
  • Trade12
  • Trade12

Amazon Prime Gains Strength, Poses Threat to Target, Walmart

According to the latest survey, there are now approximately 41 million members of Amazon Prime.

Amazon Prime keeps attracting  additional members and new data from Wall Street firm Cowen & Co suggests that the subscription service is getting stronger, serving as a bigger threat to traditional retailers trying to recover market share.

The survey proposes Amazon Prime is drawing younger and wealthier shoppers who are now shopping online for an increasingly wide range of products, apparel in particular.

Based on Cowen’s survey of 2,500 customers, members of Prime have an average household income of $69,300 (more than  the income of Amazon Shoppers in general)—some  24.8 percent higher than Walmart shoppers’ average income and 4 percent above Target’s  TGT 1.75%.

This means that Prime is mainly enticing the big income shoppers that both Walmart and Target are trying to attract.

In addition, the Prime customers are younger, around the age of 36.5 years old, against the 42 years old customers of Walmart. Target entices a similarly younger shoppers  to Amazon Prime. 


But what more could a seller want than younger and probably rich shoppers?

This is a sign that Amazon is winning more and more of working class total spending because Prime members are shopping from corner to corner more types than they were a year ago.

According to this week’s estimates provided to Fortune by Slice Intelligence statistic, 36.1 percent of all online spending on Cyber Monday, a $3 billion shopping event, occurred at

Cower estimated there were 41 million Prime members last month, up by 1 million from a month before,  tempted by the many benefits Amazon is giving to get people to subscribe,  including now Prime one-hour delivery service and free same-day delivery in some key markets.

It is an alarming new development for other retailers that Amazon customers are buying more and more apparel: the amount of Amazon shoppers saying their purchase of clothes there increased 35 percent in November compared to a year before. Cowen  stated , “this summer forecast that Amazon would surpass Macy’s  M 1.40 percent as the top U.S retailer of apparel  by 2017.” 

According to the report, approval of Prime keeps on increasing, meaning Amazon will keep getting harder and harder for Walmart, Target, and others to catch. Walmart and Target reported uncertain e-commerce growth rates last quarter, as the Amazon juggernaut gained steam.

Amazon Witness  Development in Prime Subscriptions Inc. is witnessing development in Prime subscriptions in fashionable and consumable categories, while Wal-Mart Stores Inc. and Target Corp. are experiencing a decrease in those areas, according to the report.

About 38% of the 2,500 respondents of the Cowen Consumer Survey stated they lived in a Prime household in November, the equivalent of  around 41 million Amazon Prime subscribers in the U.S. They signified about 49 percent of customers buying on Amazon. 

There were about 40 million Prime subscribers in October. According to Cowen, “The percentage of Prime customers who are also purchasing on the site has been steady since Amazon Prime Day in July, but it’s up from 41% last year.”

Amazon Prime continues to motivate customer appeal with new products and features, such as Prime Now, which is available in 22 U.S. markets, free same-day delivery in 16 major cities, and Prime Video and Music, the bank stated.

“Amazon continues to grow its Prime subscriptions in the U.S. at a very healthy rate, despite more than one in three internet-connected households indicating they live in a Prime household,” Cowen wrote in a report.

“Since the inception of our survey, Amazon Prime households have more than doubled, growing from 18% in December 2012 to about 39% in November 2015.”


Read more Trade12 reviews and information about stocks, commodities, indices and currencies.   Work with our best forex broker by creating a live account on our official site. With all the positive Trade12 feedback from clients, you will be assured that your funds are secured.


    Forex Trading

    Forex Trading is the buying and selling of currencies. It is the largest, most liquid, and fastest growing financial market in the world. The client can choose a currency they wish to change and place a trade with. 

    CFD Trading

    Contract for Differences (CFD) Trading is an agreement between two parties to switch the difference between the opening price and closing price of a certain contract. CFD enables you to theorize the price movements, whether the markets are climbing or declining. 

    Online Trading

    Online trading includes the frequent buying and selling of stocks, commodities, and currency pairs which seeks to generate profit in a short period of time. It involves technical analysis tools such as moving averages and stochastic oscillators are used to identify which stocks are worth buying as of the moment and help traders in the process of making trades.


The articles posted on this blogsite do not necessarily reflect the views and opinions of the forex broker firm. All content provided in this website is intended for informational purposes only.

Contact Us

Get Social