Amazon shoppers remain loyal despite inflation fears, maintaining spending and high Prime membership levels

Despite concerns about rising prices and trade tariffs, U.S. Amazon shoppers are staying loyal, with 62% maintaining or increasing spending in the past three months. Only 3% have stopped purchasing, while 31% spend less and 34% shop less frequently due to inflation fears.

Jefferies analysts found that 45% of consumers would reduce Amazon spending if inflation worsens, rather than switching to other retailers. Amazon Prime membership remains strong, with 73% of surveyed shoppers enrolled. However, 19% are considering canceling their membership, posing a slightly higher churn risk than competitors like Walmart+ and Costco.

Amazon is still leading in key e-commerce metrics, with high ratings for shipping, product selection, and pricing. Jefferies maintains a Buy rating on Amazon stock, citing strong platform loyalty and pricing power. The upcoming Prime Day event is expected to drive a surge in Prime sign-ups, especially among younger shoppers.

To gain deeper insights into retail consumer trends, investors can use the Earnings Calendar API to track Amazon’s upcoming earnings and the Company Rating API to compare Amazon with its competitors. Amazon’s resilience in the face of economic challenges and its strong position in the online retail market make it a favorable investment choice for many.