Survey Says One In Four Prime Users Use Prime Now

Prime Now is very much on the rise, according to a recent survey.

StreetInsider shares the findings from a Cowen study indicating that Amazon’s one- to two-hour delivery service was used by 25 percent of U.S. Prime subscribers in Jan. 2016. Writing in the survey, Cowen Analyst John Blackledge referred to that rate as “extremely impressive early penetration” of the firm’s estimated 40 million-plus Prime members in the United States.

Additionally, the Cowen survey appears to bear out that a good number of those subscribers are not one-and-done users of the Prime Now service, as 24 percent of respondents reported to purchase goods weekly on Prime Now (which charges $8 per one-hour delivery, while two-hour delivery is free for Prime members) and 70 percent stated that they used the service multiple times per month.

Cowen, StreetInsider goes on to share, also took a look at the demographic breakdown of the 1,250 Prime Users it surveyed, noting that 66 percent of them were represented by consumers between the ages of 25 and 44. Furthermore, about 33 percent of those aged 18–34 used Prime Now to shop from a local grocery store, which was more than those aged 35–54 (25 percent) and those 55 and over (6 percent).

The leading Prime Now product categories bore out by the Cowen survey were, in decreasing order: Media (60 percent), Electronics under $50 (47 percent), Personal Care (44 percent), Apparel/Shoes/Accessories (41 percent), Electronics over $50 (38 percent), Household Products (27 percent), Toys (26 percent) and Groceries (22 percent). In the January period that was addressed by the survey, Prime Now users bought an average of four product categories.

As a result of its findings, Cowen, states StreetInsider, believes that Prime Now is a legitimate threat to local stores — especially those that deal in frequently replenished goods — that operate within its delivery areas.