Prime Day Membership Bump, Hybrid Selling Model, & Post-Pandemic Grocery ShoppingBy Cleveland Admin
Our research suggests an uptick in interest among brands to pursue the hybrid model on Amazon. This means brands would maintain their 1P retail relationship with Amazon’s retail team while also offering assortment on the 3P marketplace, either via the brand itself or through a partnership with another 3P seller. Brands are intrigued by several benefits, such as greater pricing control, inventory backstop abilities, and the ability to launch new products faster. However, brands also have to balance key challenges and considerations like how to execute the 3P portion of the business and how to manage the 1P relationship with Amazon.
Recent Prime Day Drives New Prime Memberships:
This year Amazon held Prime Day on June 21st and 22nd. Our recent consumer survey suggests 33% of current Prime members sign up for membership in the 30 days leading up to Prime Day, compared to 26% in 2020. Of those recent members, 84% made a purchase on Prime Day compared to 56% of the total survey sample of Prime members. New Amazon Prime members were more likely to make planned purchases (57%) compared to spontaneous purchases (32%) during Prime Day with (7%) reporting a combination of both planned and unplanned purchases. These data points suggest Amazon was effective in marketing its deals and the value of Prime membership ahead of the event.
In-Store vs. Online Grocery Shopping Pre- and Post-Pandemic:
Our recent COVID-19 Consumer Sentiment Survey shows 68% of consumers are now grocery shopping in-store, compared to 53% during the pandemic. Interestingly, a consistent 68% expect to do in-store grocery shopping in the future, suggesting we may be settling into the new normal within this category. On the flip side, 32% of consumers report doing the majority of their grocery shopping online today, representing a significant 17 point increase vs. pre-pandemic shopping behavior.
Source: CRC Consumer Survey, June 2021, n=641