As a platform, Amazon has more dimensional user data, and its research on user portraits is more detailed. For a listed company like Amazon with a market value of more than 1.7 trillion US dollars, there will be many third-party organizations that publish survey results on Amazon. For ordinary sellers, these public data can be used to build user portraits to assist in operational decisions.
In April 2018, Amazon announced for the first time the number of its global Prime paid members: more than 100 million. For Amazon, the huge Prime member group is its strong moat. Through membership renewal and other methods, it not only increases the user’s willingness to buy, but also brings a continuous source of traffic to the website. From an empirical point of view, there are many products that cannot be sold without FBA, and it is even more a fantasy to want to explode orders by just spreading a large number of goods. By collecting third-party public data, we can get a glimpse of the shopping behavior of Amazon Prime members, thereby providing reference for daily operations.
First, according to data from Millward Brown Digital, the conversion rate of Amazon Prime members is 74%, and the conversion rate of non-members is 13%. In 2018, Amazon Prime members spent an average of $1,400 on Amazon, while non-members spent an average of about $600. At the same time, there are about 95 million Prime members on Amazon’s US site, accounting for about 29% of the total US population. Assuming that all Americans are Amazon users, operators can obtain relevant data through simple conversion.
It is not difficult to see from the data comparing the spending power of Amazon members and non-members that even though the number of non-members is more than twice the number of members, in terms of final spending power, the spending power of Prime members is about 5.4 times that of non-members. According to the “80/20 rule”, among the 327.16 million Americans, there are about 65.43 million buyers who actively shop on Amazon. From the buyer’s perspective, most of the buyers who shop frequently should be Prime members, and naturally they are willing to buy Prime products. Therefore, providing buyers with products delivered by FBA is still one of the shortcuts to increase sales.
Second, according to a report by the third-party agency Consumer Intelligence Research Partners (CIRP), among Prime members in the United States, nearly 35% are monthly members, about 33 million. It is obvious that these buyers do not have the habit of shopping on Amazon all year round, and choose to join when there is a need for intensive shopping. This means that the number of Amazon members fluctuates, and there is a high probability of seasonal changes.
Finally, the platform data is obtained, and specific daily operations can be guided in a targeted manner. Although sellers cannot directly obtain the identity information of buyers, they can see the sales data of Amazon delivery and sellers’ self-delivery in the daily order report.
From the comparison of the order volume in 14 days, although the number of FBA sales accounts for 63% of the total order volume as a whole, it is only 1.7 times that of self-delivered orders, which is far from the conclusion above that the consumption capacity of Prime members is about 5.4 times that of non-members. This shows that a large number of buyers, although they are Prime members, do not choose to buy FBA products. The reasons for this phenomenon may be pricing, FBA out of stock, lost shopping carts, etc. By comparing the values, the operator can increase the sales volume of the link by more than 1 times, and can consider the mid- and long-term operation and seasonal stocking in advance to avoid the negative impact of out-of-stock on the link.