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Searches For 'Canceling Amazon Prime' Jump On Day 1 Of Prime Day

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ASSOCIATED PRESS

It's not over yet, but Amazon Prime Day is already producing some pretty powerful data points.

Notably, that consumers are already showing interest in canceling their Amazon Prime memberships. Searches for "Canceling Amazon Prime" was 18 times higher on Monday than usual and the event wasn't even half over, according to Captify. And while a big goal of Prime Day is to increase Prime membership, Amazon may be falling short.

"If Amazon is hoping to use Prime Day as a way to sign up and retain new Prime Members, they might need to rethink their retention plan," the company said in an emailed statement. "According to search, consumers are signing up for Prime, getting their deals and then canceling membership shortly after."

Amazon wants more people to buy into its $119 a year Prime program. It's unclear how many new Prime members will quit the program, which has proven to be among the stickiest. More than 90% of Prime members renew, according to the company.  Still, some have conjectured that Amazon may have hit a wall with attracting new Prime members and the growth going forward is coming from getting these members more and more entrenched in the Amazon ecosystem.

This means ordering more and more often and using Amazon's smart technology and electronics to further lock them in. Growing Amazon-owned brands is also critical and this is evident in Amazon's daily promotions, not just those on Prime Day.

Amazon should see a nice spike in advertising revenue.

The retailer has required brands to increase ad spend on the site during Prime Day, some by at least 100%, according to CNBC. It's part of a brand's relationship with the retailer and not uncommon across the industry. Before there were online sales, brands increased ad spend with, or on behalf of brands at retail for big shopping events such as Black Friday and Back to School. Amazon differs in that its ad division brought in $2.7 billion during the first quarter of this year alone whereas traditional retailers record these ad partnerships as a co-operative spending program in financial results.

Prime Day is boosting sales at more than just Amazon.

Searches for deals and products spiked for Amazon (184%) but also for rival retailers. Best Buy could be the big winner as searches jumped 255%, Walmart 130% and eBay 72%, according to Captify.

On the first day of Amazon Prime Day, retailers that make more than $1 billion in annual revenue saw a 64% increase in online sales compared to an average Monday, according to Adobe. It's an increase from the 54% bump in 2018.

Niche retailers, which Adobe classifies as those that bring in less than $5 million in annual sales, saw a 30% increase in online sales on Monday, according to the firm.

Best Buy, in particular, could benefit.

According to Molly Hop, SVP of Commerce at Performics, the retailer's price matching policy is proving an effective tool to compete with Amazon. In fact, this works particularly well for younger shoppers who like to check out items in person and compare prices, even on Prime Day, said Hop. And given the heavy emphasis electronics get on Amazon during the event, Best Buy's bump in search activity is proof the strategy is working.

Amazon has upped its data collection game. 

Part of the Amazon's power is that it knows more about its customers -- nearly all consumers, really -- than most. In addition to all the information it gains from searches on the platform, preferences and reviews, the retailer is now offering $10 in credit to customers who let them track activity outside of Amazon.

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