A record number of Americans have Prime memberships and Etsy merchants are unhappy with the platform [MDSR #19]

April 25, 2024

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Hot Off the Presses 📰

A record 180 million Americans had an Amazon Prime membership as of March, an 8% increase YoY, according to a report by Consumer Intelligence Research Partners (CIRP). 75% of all of Amazon's U.S. customer base now has a Prime membership, up from 71% in 2023 and 70% in 2022.

More:

  • CIRP noted that the number of members that pay for a prime membership is lower than 180 million as many of them share accounts with their friends and family.

  • Amazon hasn't provided official numbers on Prime memberships since April 2021, when it revealed there were 200 million Prime members globally.

  • Amazon raised the price of an annual membership by 20$ to $139 in 2022, while the monthly price rose by $2 to $14.99.

  • The report is available here.

Some Etsy sellers are complaining that the platform is becoming too much like Amazon. Multiple merchants told ModernRetail they've noticed a rise in duplicate products and drop shipped items. Other merchants have said it's gotten harder to operate sustainable businesses on Etsy due to a rise in competition and higher fees.

More:

  • Etsy increased its take rate from 5% to 6.5% in February 2022.

  • Etsy ended 2023 with over nine million merchants on its platform up from 7.5 million at the end of 2022.

  • The company defended its track record noting it's cracking down on merchants that violate its rules.

  • Etsy has also rolled out multiple highly-requested features such as adding expiration dates for coupons.

Amazon operated a secret initiative called “Project Curiosity” to gather information from rivals such as Walmart and eBay. Amazon set up a separate entity in 2015 called Big River and sold products on rival marketplaces under this brand.

More

  • Big River was designed to help Amazon aggregate information that enabled it to improve its customer experience.

  • Big River employees were instructed to use non-Amazon emails to communicate with staff from rival companies.

  • Amazon defended itself saying the company was engaging in the legal practise of “benchmarking” where companies compare their products with their competitors.

  • Amazon has renamed “Project Curiosity” to “Small Business Insights.”

Amazon rolled out a new grocery delivery service for Prime members. The service is also available for Americans with an Electronic Benefits Transfer Card (EBT).

More:

  • The service is available in 3,500 cities and towns across the U.S.

  • EBT holders will pay $4.99/month for the service compared to $9.99 for Prime members.

  • Amazon will waive delivery fees on all orders of at least $35.

  • Customers can place orders from multiple grocery chains including Amazon Fresh, Whole Foods, and Rite Aid.

  • Amazon first started piloting the service in 3 cities in December 2023.

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Weekly Reading 📖

This week's recommended reading is "Winner Sells All: Amazon, Walmart, and the Battle for Our Wallets" by Jason Del Rey. The book provides readers with a riveting historical breakdown of Amazon and Walmart's decisions to enter each other's territory and the impact it has had on consumers, merchants, and employees. Del Rey also provide a brilliant breakdown of how this rivalry will disrupt the consumer experience in the future.

 "Winner Sells All: Amazon, Walmart, and the Battle for Our Wallets" has a 4.5/5 rating.

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E-commerce Tool of the Week 🏫
Pic Copilot uses AI to help e-commerce merchants create beautiful product images. The tool enables merchants to create visually appealing scene backgrounds and comes with image translation capabilities. Pic Copilot was built by a team of designers with over 20 years of experience and the AI was trained on over one billion images.

Pic Copilot has a rating of 5 stars on Product Hunt

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Videos Worth Watching 💸

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An Event You Should Attend! 🗓️

As a pivotal part of our Million Dollar Seller community, we're thrilled to extend a special invitation to join us at Accelerate, by Pattern (the largest Amazon seller!)

To make this event even more special get a chance to meet Jessica Simpson along with other highly respected brand owners. Use our exclusive 50% discount on your ticket with the code MDS50 and get this 2 day event for just $372!

Why Accelerate is a Must-Attend: Accelerate is more than just a trade show; it's a convergence of minds and ideas that could very well shape the future of ecommerce. This year, we're proud to announce not only our sponsorship but also the active participation of MDS founders at the event. Here’s what you can look forward to:

  • Exclusive Insights: Learn strategies from top industry leaders, including a keynote from the renowned Jessica Simpson, who turned her brand into a billion-dollar empire.

  • Networking with Giants: Connect directly with the founders of MDS and other e-commerce veterans who are shaping the marketplace.

  • Innovative Tools and Resources: Discover new tools and technologies that can catapult your business forward.

Event Details:

  • Date: May 9-10, 2024

  • Location: Salt Palace Convention Center, Salt Lake City, Utah

  • Discount Code: MDS50 for 50% off making it only $372!!

Event Website: accelerationsummit.com 
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Did You See That Post

How to Build the Perfect Landing Page

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If you are looking for a business professional community made for e-commerce entrepreneurs, then consider applying today. 

*To qualify, you must be a full-time seller or brand owner and do at least 1 million in verified annual revenue.

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Quick Hits

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Until Next Time ✌️

As always, thanks for sticking with us until the end. 

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See you next time with more of the latest and greatest content you need to succeed this year 🔥

Sincerely,