Amazon’s $1 Billion Bet In Columbus

xPrime Now Columbus Delivery

Tracking the bet!

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Setting the Base Line

In my previous June 6th blog, I pointed out that Amazon was making a $1 billion investment in the Columbus, Ohio market and attempted to provide a rationale for that investment as well as the competitive risks for traditional brick and mortar retailers. Using Prosper Insights & Analytics Monthly Consumer Survey and additional information, I will endeavor to track and illuminate … The Confrontation In Columbus.

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The Importance of membership

To set the baseline for future editions, I thought the following two charts might be helpful:

Ohio and East Central Census Division_Have Prime MembershipOn the immediate left, you can see Amazon Prime Membership penetration in both the state and region has grown from around 15% to a little over 31% in the last 3 years.

The Prosper Insights data selected covers both the state of Ohio and the US Census Bureau Division 3, East North Central Division which includes Indiana, Illinois, Michigan and Ohio, so that in the future we can track both the state and regional level data.

Amazon Prime Now users in Columbus are generally eligible for 1 to 2 hour delivery of groceries and other products.

 

Consumer Usage

Shopped Amazon in the past 90 days Ohio and East CentralConsumer Usage is the next important benchmark. Survey respondents were asked, “Which of the following retailers have you shopped in the last 90 days?” Note the recent range of over 60% of all shoppers are buying ‘something’ from Amazon and that over 68% bought during the holiday season.

We have a three year data history that takes us right up to the launch of Prime Now service to the Columbus market. We will, in future installments, be able to track competitive impact.

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ronaldllunde@gmail.com

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  1. […] relevant blogs: Confrontation in Columbus, Amazon’s $1 billion bet in Columbus, Game on […]

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