The world’s largest retailer will end free shipping for online orders under $50 Canadian starting April 2.
And Prime customers provide big spending boosts, a new report says.
The average order value for U.S. sales on Amazon.com Inc., excluding digital sales, stood at $47.31 in June, according to a new report from eDataSource. It put the average order in May at $49.27, and in April at $46.15.
The market research firm based its findings on analysis of 30,000 Amazon e-mail receipts from its consumer panel. The findings represent some 50,000 purchases. The market research says its finding show a 10% jump in sales on Amazon between April and June, based on the company’s own sales index.
Consumer electronics and computers took the biggest slice of sales during that period when measured by money spent per 10 product categories—42.9%, compared with the next-largest category, books, at 14.6%. The third-largest product category was apparel, shoes and jewelry, at 8.8%. Automotive brought up the rear, at 0.8%.
But when measured by unit sales, Amazon still remains close to its roots: Books accounted for 27.4% of unit sales between April and June, edging consumer electronics and computers at 26.6%. At 12.0%, grocery, health and beauty was in third place, while automotive, at 0.6%, again took last place.
The average unit cost for consumer electronics and computers ordered via Amazon was about $42 during the period, with books at just less than $15.
Amazon’s Kindle Fire tablet computer came out a winner in the April-June analysis, accounting for 68.5% of the dollars spent for all Kindles, and 54.4% of the units sold in the Kindle product category. “The largest, most expensive unit—the Kindle DX, boasting a $379 price tag—represents less than 2% of product sales [by spending, not units],” the report notes.
Amazon is No. 1 in the Internet Retailer Top 500 Guide.
The report also says that:
• Members of Amazon Prime, which offers free two-day shipping in exchange for a $79 annual fee, in May spent on average $49.23 per order, compared with $44.81 per order for other Amazon customers. In June, however, that gap narrowed, to a $47.42 average order value for Prime customers, and $47.25 for other customers.
• Prime members order more often than do other Amazon customers. In June, the average number of orders for Prime customers stood at 4.12, compared with 2.13 for other customers.
• Also in June, shoppers who were analyzed and members of Prime accounted for 31.7% of sales that month. “Prime members represent nearly 19% of the Amazon customer base and are heavy spenders,” the report says.