Bizrate Insights, a division of retail marketing solutions firm Connexity, found in a new survey that 9.7% of shipping club members are considering non-renewal because of late deliveries. At the largest shipping club, Amazon Prime, 9.6% of members are considering non-renewal because of late deliveries, Bizrate Insights found.
The survey collected nearly 6,400 responses from online buyers about their participation in shipping clubs, late deliveries and renewal intentions based on late deliveries.
“Shipping club membership has grown significantly over the last few years, up 36% year-over-year among Cyber Monday shoppers in 2014,” said Hayley Silver, vice president of Bizrate Insights, in a release. “The growth rate has slowed when compared to 2013, which was up 53% year-over-year. Listening to consumer sentiment this January, there is dissatisfaction that may lead to non-renewal by over 40% of members – one quarter of which is specifically due to late deliveries.”
Among overall shipping clubs members, the survey findings included:
- 33% of online buyers report membership in a shipping club in December 2014
- 28% had a free trial membership in December 2014
- 43% may not renew: 73% of free trial members and 31% of paid members
- Late deliveries is the specific reason members may not renew for nearly a quarter of all considering non-renewal
Among Amazon Prime members:
- 28% of online buyers report membership in Amazon Prime; 26% of these Prime members reported having a free trial membership in December 2014
- 21% agree that they received at least one Amazon Prime order late.
- 31% agree – 50% more – that some of their items ordered through Amazon Prime arrived in more than two days
- Generation Y is far less forgiving: 26% report at least one Amazon Prime order arriving late and 35% report that some of their Amazon Prime items arrived in more than two days.
- 41% may not renew
Among shipping clubs members excluding Amazon Prime:
- 38% had a free trial membership in December 2014
- 57% may not renew; approximately one-fifth of which is specifically due to late deliveries (10.5% of members).