Amazon.com, Inc. (NASDAQ:AMZN) is riding high as the Prime subscriptions have reached 41 million members as per the findings of a new survey by Cowen & Co. According to the survey, the kind of members that the Amazon Prime is enticing is wealthy and young.
The survey was conducted on 2,500 Amazon customers and it found that most members had gone for the annual subscription plan of $999 that offered free shipping for two days. Such members had a household income of $69,300 on an average which is more than the income of an average shopper on Amazon. Amazon Prime is also emerging as a threat to Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT), clawing market share from traditional retailers.
Wal-mart and Target are in the race to woo higher income bracket shoppers; however, Amazon is already registering stellar performance. Moreover, the customers on Amazon on an average are 36.5 years while for Wal-Mart the average age is 42.
Excellent Growth Momentum
Amazon founder and CEO, Jeff Bezos, is having a good time and it seems that the company is growing at a much better rate than anticipated. The Cyber Monday saw a $3billion shopping on Amazon.
According to the survey, last month itself over 1 million new members subscribed to Amazon Prime and the categories shopped across increased to 4 from 3.6 in the year ago period. The one-hour delivery and free delivery option is also a major attraction.
Customers preferring to buy apparels on Amazon rose 35% compared to last year. Amazon is expected to surpass Macy’s to become the top retailer of U.S.
Amazon Shoppers Increasing
According the Cowen Consumer Survey, Amazon apparel shoppers has grown by over 30% annually; however, Wal-Mart and Target registered an average decline of 4% and 2.5% in the apparel category.
Buyers of online retail consumable products including household, personal care, pet and children’s and baby products have seen a major rise this year and the highest number of growth of consumers was witnessed by Amazon at 26% compared to November 2014, while Wal-Mart recorded a of 6% and Target of 4%.
Sources: fortune, news.investor