The bigger picture: Despite these issues, Amazon Prime’s churn rate is incredibly low; 98% of those who subscribe for at least two years stay subscribed, per Consumer Intelligence Research Partners.
- But with layoffs and cost-cutting measures coming down the pike for Amazon’s retail business, its ability to deliver the convenience and speed customers have come to expect is in serious doubt.
- And while Amazon’s ad business has become crucial to its bottom line, expanding too quickly could add to shoppers’ frustrations if they’re forced to wade through pages of sponsored listings before getting to their desired product.
With competitors like Walmart and Target making strides with their ecommerce businesses, Amazon can’t afford to drop the ball.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.