Growth of paid retail membership in the United States has reached saturation, with Amazon Prime accounting for 53.1%

It is learned that in the past three years, the e-commerce sales boom brought about by the epidemic has driven many retailers in the United States to launch paid membership services, and the number of members and subscription revenue have also increased sharply. However, according to the latest data from eMarketer, the overall revenue growth of paid retail memberships in the United States is slowing down, and the market is becoming increasingly saturated.

According to reports, since 2020, Walmart, Best Buy, Sephora, Kroger and Albertsonss have launched new paid membership services. Most of these membership services adopt a model similar to Amazon Prime, with free shipping and delivery as the core. They also usually provide access to exclusive products, services and rewards programs.

Although the number of retailers offering paid membership services in the U.S. retail market continues to increase, the overall revenue growth rate is declining. After growing by more than 20% in the first two years of the outbreak, the growth rate of this indicator fell to single digits last year, indicating that the market is oversaturated.

At present, the long-term growth prospects of paid retail membership in the United States remain unclear, especially under economic uncertainty. In the first two years of the epidemic, subscription revenue grew strongly, reaching pre-epidemic market expectations several years ahead of schedule.

While retail membership subscription revenue growth may accelerate in the long run, consumers are more cautious about spending on subscription services amid economic uncertainty.

In addition, retailers have expanded subscription services to delivery apps, fast-food chains, direct-to-consumer brands, and media platforms, and consumers are starting to feel subscription fatigue. As a result, retail membership subscription revenue growth will remain low until 2024.

Some retailers have an advantage in paid memberships. Amazon Prime is forecast to capture 53.1% of U.S. paid retail membership revenue this year, far ahead of its closest competitor, Costco, which has a share of only 9.5%, and Walmart's Sam's Club and Walmart+, which have a share of 5.9% and 1.5%, respectively.

Although Walmart has been trying to catch up with Amazon in the paid membership field, there is still a long way to go. Whether it is the discount strength, delivery speed or streaming programs, Walmart+ cannot compete with Amazon Prime, and the number and loyalty of member customers of the two are also quite different.

Walmart recently redesigned its app and website and is building the WalmartConnect retail media network, but it will take a long time for Walmart to replace Amazon in the paid retail membership space in the United States.

Editor✎ Ashley/

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