New data from CIRP finds that Amazon shoppers who opt for one-day or same-day shipping are among the highest annual Amazon.com spenders.
Amazon.com shoppers who select one-day or same-day shipping spend $1,270 annually on Amazon, according to new U.S. data from consumer research firm Consumer Intelligence Research Partners.
The longer the shipping time, the less a shopper spends annually with Amazon, according to the new data. For shoppers that receive five-day or longer shipping for their Amazon orders, they spend about half, $630 annually, with Amazon.
CIRP estimates the following annual spend for Amazon customers based on shipping times:
- Same-day or one-day shipping: $1,270
- Two-day shipping: $1,100
- Three -or four-day shipping: $860
- Five days or longer: $630
Fast, reliable shipping is a universal customer preference, said Josh Lowitz, a partner at CIRP. While other retailers may also benefit from increased spend and customer loyalty if they offer fast shipping, it may not be worth the investment.
“The return on investment may vary for non-Amazon retailers,” Lowitz said. “The cost of faster, more reliable shipping may exceed the value of the increase in customer shopping for some retailers.”
Often, Amazon’s fulfillment time is determined by what it can offer to shoppers with any given product in that shopper’s market. For example, Amazon is unlikely to offer same-day shipping for an unpopular product to a rural shopper. Sometimes shoppers choose longer shipping speeds for various reasons, such as free shipping if they are not Prime members or a small credit to their account. But often, shoppers select the fastest time Amazon offers, according to CIRP.
Fast-shipping shoppers are among the highest annual spenders with Amazon, according to CIRP. Shoppers with Amazon’s store-branded credit cart (offered by financial services firm Synchrony) spend the most annually.
The research firm estimates the following annual spend for Amazon shoppers:
- Average Amazon credit card holders: $1,900
- Average Amazon.com customer who receives same-day or one-day shipping: $1,270
- Average U.S. Amazon.com Prime customer: $1,100
- Average U.S. Amazon.com customer: $1,000
- Average U.S. non-Prime Amazon.com customer: $600
CIRP estimates 180 million U.S. consumers have an Amazon Prime membership as of Q1 2024.
CIRP’s data is based off of quarterly surveys of 500 U.S. consumers who have made an Amazon.com purchase within the previous 90 days.
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