No Prime No Party: Sellers on Amazon Who Forgo Prime Face Expensive Consequences

1. Sellers who forgo Prime eligibility effectively disappear from Amazon’s storefront

358. In 2021, over (redacted) U.S. consumers, or approximately (redacted)% of U.S. households, subscribed to Amazon Prime. Prime subscribers account for an overwhelming share of all purchases on Amazon—more than (redacted)% of all purchases by dollar value in 2021. Prime subscribers also disproportionately purchase Prime-eligible offers. For example, more than (redacted)%Prime-eligible products for every one non-Prime-eligible product they purchased.

359. For many sellers, having Prime-eligible products is a prerequisite to making significant sales on Amazon. The Prime designation makes sellers’ products more discoverable—and therefore likely to be purchased—(redacted)

360. Overall, Prime eligibility alone regularly (redacted) a seller’s sales on Amazon. Meanwhile, sellers who forgo Prime eligibility effectively disappear from Amazon’s storefront. Amazon relegates non-Prime-eligible products to a near-invisible, second-rate version of Amazon’s Marketplace. Without Prime eligibility, (redacted) Ready access to online shoppers is a critical aspect of online marketplace services, but Amazon effectively conditions access to a substantial portion of its shoppers on sellers also buying FBA services.