Almost 40% of Brits pay for a retail subscription service

Research by Mintel Retail has found that 39% of UK shoppers have signed up for a paid delivery or retail subscription pass. This has increased from 31% of the population over the last two years, while shoppers aged 25-34 are even more likely to sign up to a subscription with 54% of these shoppers paying for a premium service on a regular basis.

Amazon Prime continues to be the favourite subscription in the UK, with 31% of Brits claiming they are paying members, up from 23% in 2018.

Delivery services are the most popular benefit of paying a dedicated fee, with 62% of subscribers doing so for the free/extra delivery options, while 49% want preferred delivery time slots. Meanwhile, 43% are subscribers for the free returns, which is more appealing than personalised offers (23%) and exclusive products (23%).

“While a considerable number of new paid subscriptions have emerged, Amazon Prime continues to gain popularity. It is essential that the other players look at the online giant’s scheme as a benchmark and understand how they can incorporate some of its competitive advantages into their own offerings,” said Armando Falcao, research analyst at Mintel Retail.

Speaking specifically about Amazon’s Prime offering during its Prime Day shopping event (13-14 October 2020), Falcao added: “Consumers are increasingly expecting products and services to be delivered to them quickly, wherever they are. In fact, same-day delivery is one of Amazon’s main competitive advantages over other online rivals, and while its competitors offer a same-day service, this is usually an extra add-on. For Amazon Prime, the attraction goes beyond fast delivery service; it is access to a vast digital library of streaming entertainment, including Prime Video, Prime Music, and Prime Reading, that has allowed it to excel.”