The E-Commerce Membership Report - Product Image

The E-Commerce Membership Report

  • ID: 3251077
  • Report
  • Region: Global
  • 24 Pages
  • Business Insider Intelligence
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Amazon Prime is the most widely known and used online membership program. And it's been so successful for the company that other online retailers are now beginning to explore their own up-front, fee-based programs.

Membership programs offer retailers a number of advantages, including getting consumers to shop habitually at the same merchant.

But there are also major challenges to operating membership programs. The services often come with added costs for retailers, such as absorbing delivery costs, which may not be easily recouped. In addition, retailers must clear a high bar in order to convince customers that they are offering a service that's actually worth paying extra for.

In this report, we define what an e-commerce membership program is and how retailers are taking the Costco model and updating it for the online shopping age. We also assess the advantages and disadvantages of e-commerce membership programs for the retailer, as well as what consumers might look for in these programs and what incentives are needed to get people to sign up. And we include examples of how some e-commerce companies are structuring membership programs and provide an outlook for other retailers and product categories that could benefit from employing the membership model.

In full, this report:

- Looks out how different retailers are putting a twist on the Costco model.
- Includes data about how much shopping club members spend versus regular customers.
- Lists the advantages and disadvantages that retailers face with operating a membership program.
- Outlines the incentives that drive consumers to pay an annual fee for shopping programs.
- Provides an in-depth look at why membership programs could be the key to unlocking the grocery e-commerce market.
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