Amazon Prime UK yet to reach full potential, says report

By

Barbara Santamaria

Published
Apr 13, 2017

Amazon Prime has now penetrated nearly 33% of UK households, according to new research, reaching the same levels it had in the US around April 2015.

The e-commerce company’s paid subscription service is expected to follow in the footsteps of the US and achieve a rapid expansion in the UK. eMarketer reported based on a new research from Cowen and Company that Amazon Prime had at the end of March approximately 8 million UK subscribers, equivalent to a 33% UK household penetration rate. In the same period, US Prime penetration grew to 47%.

Additionally, the report estimates that 43% of Amazon shoppers in the UK were Prime members in the first quarter, mirroring the 43% rate seen in the US in the first quarter of 2015.

Prime members benefit from unlimited one-day delivery of millions of eligible items, access to movies and TV, ad-free music and early access to flash deals. The annual membership programme was launched in 2005 and costs £79 a year.

According to the report, UK Prime members accounted for nearly £20.30 billion of Amazon's gross merchandise value in 2016. This represents a 22% increase on the previous year and is equivalent to approximately 40% of all UK e-commerce sales for the year.

Leading product categories on Amazon UK include physical books, CDs and DVDs, home and garden products, ebooks, and electronics priced less than $50.