The company’s Prime Now service, which delivers more than 10,000 goods within two hours, is finding a ready customer base in fashion, according to a survey by Cowen and Co. analyst John Blackledge.
The Cowen surveyed of 1,250 people suggested 25 percent of U.S. Amazon Prime subscribers purchased something on Prime Now in January, which Blackledge described as “strong early adoption.”
And 41 percent of the Prime Now customers bought an item in the apparel, shoes or accessories area.
While the absolute numbers are not certain, the survey’s results indicate that large numbers of consumers are turning to Amazon to get apparel delivered ultra quickly, signaling a growing competitive threat for stores that make immediacy their calling card.
The e-commerce giant has an estimated 40 million-plus Prime members who pay a fee to get free two-day shipping, access to streaming music and videos and other perks. The Prime Now service was launched in December 2014 and offers one-hour delivery for a roughly $8 fee and free two-hour delivery for Prime members. It covers 24 markets representing about 48 percent of the U.S. economy.
Blackledge said the service is part of a broader push by Amazon.
“Prime Now is part of a multiplatform approach that also includes Prime, Prime Same Day, Fresh and Pantry designed to drive greater value proposition for Prime [subscribers] and ultimately higher share of household budgets for Amazon,” he wrote in a research note.
Fashion is clearly in the crosshairs at Amazon, which quietly introduced at least seven private label fashion brands with about 1,800 stockkeeping units.
The company is also looking to bring on board some more help with fashion experience to further the effort.