‘Canceling Amazon Prime’ spikes in search during first day of Prime Day sales: report
Even before Amazon Prime Day was over, many people appeared to be trying to cancel their memberships, according to new data.
Intelligence company Captify found that on Monday, internet searches for “Canceling Amazon Prime” were 18 times higher than usual, despite the fact that the two-day online sales event was only partially over.
"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," the company told Forbes. "According to search, consumers are signing up for Prime, getting their deals and then canceling membership shortly after."
The online retailer declined to comment on its cancelation data, a spokesperson told FOX Business.
However, the spokesperson did say that the company had its “two biggest days ever for member signups” on July 15 and July 16.
An Amazon membership costs $12.99 a month or $119 a year, though the company gives new members a free 30-day trial. After the first month, those users are automatically enrolled in a monthly membership.
Regardless of how many people canceled their Prime membership, customers, in total, purchased more than 175 million items throughout Prime Day.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 201.70 | -0.91 | -0.45% |
Other retailers also saw their sales increase over the course of the two-day sale.
Sellers with annual revenue over $1 billion saw their sales increase an average of 72 percent, compared to an average week, according to a new report from Adobe Analytics on Tuesday.
The report found that the second day of the sale became the fourth day outside of the holiday season to surpass $2 billion in online sales. It is unclear how much money both days pulled in.
“Prime Day has become an indisputable summer shopping holiday, greatly benefiting online retailers that can attract consumers to their site through compelling email campaigns or offering value-add services like buy online, pick up in-store,” said Jason Woosley, vice president, Commerce Product and Platform at Adobe.
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In a news release on Wednesday, the e-commerce behemoth claimed it was the largest shopping event in Amazon history, with sales surpassing those of Cyber Monday and Black Friday combined. A record number of people shopped during Prime Day in the U.S.
FOX Business’ Megan Henney contributed to this report.
