Searches for cancelling ‘Amazon Prime’ spike

Bloomberg

Internet searches for “Cancelling Amazon Prime” were 18 times higher during Prime Day — the beginning of Amazon.com Inc’s two-day sale — than the previous day, according to search intelligence firm Captify.
The data suggest shoppers want to snatch up discounted gadgets and appliances without making a long-term commitment to the world’s biggest online
retailer.
“If Amazon is hoping to use Prime Day as a way to sign up and retain new Prime members, they might need to rethink their
retention plan,” Captify said.
“According to search, consumers are signing up for Prime, getting their deals and then cancelling membership shortly after.”
Shoppers were projected to spend $5.8 billion on Amazon over the two days, according to an estimate from Coresight Research.
The e-commerce giant launched Prime Day in 2015 as a way to lure new Prime members, who pay fees in exchange for shipping discounts and other perks like video streaming.
Analysts estimate Amazon’s Prime member retention rate is more than 90 percent, better than Costco Wholesale Corp.