Americans Spend an Average of $465 Per Year on Retail Subscriptions
Amazon Prime, Scentbird, Birchbox, Blue Apron, Dollar Shave Club—retail subscription services are everywhere these days. According to the Subscription Commerce Conversion Index from Pymnts and Recurly, Americans spend an average of $465 a year on retail product subscriptions.
Approximately 41 million U.S. adults use subscription services, and this does not include streaming services such as Netflix, Hulu, and the recently released Disney Plus.
Not surprisingly, Amazon has the biggest hold over the industry. Nearly half (46%) of respondents with at least one retail subscription said they have a subscription through Amazon, excluding Prime accounts.
Retail subscribers are significantly more likely to cancel their subscriptions than streaming service subscribers. Over 20% of respondents with a retail subscription said they planned to cancel those services within the next 12 months. Only 8% of respondents said this about streaming.
Americans spend much less on streaming than they do for retail subscriptions ($190 annually vs $465 annually), but streaming still has a much larger market. There are nearly 124 million adults with streaming subscriptions in America, resulting in a $23.5 billion market.
Family structure has an interesting influence over retail subscriptions. Single parents are four times less likely to have a retail subscription than single adults without children. However, couples with children are two times more likely to have retail subscriptions than couples without children.
A recent study from Experian shows that 84% of Americans want to improve their finances this holiday season. If you’re among them, consider cutting back on these micro debts. Each individual subscription may only cost $10-$20 per month, but that can add up to a couple hundred dollars a year. Also consider asking for subscriptions instead of gifts for the holidays. In that way, you can enjoy your streaming or retail services without spending your own money.