Primarily based by itself Amazon buyer survey, securities analysis agency Shopper Intelligence Analysis Companions (CIRP) estimates there have been 101 million U.S. Amazon Prime members as of December 31, 2018. CIRP additional reported that 62 % of Amazon’s U.S. clients are Prime members.
Amazon hasn’t given up actual Prime membership figures for the U.S., however in a letter to shareholders in April 2018, Amazon CEO Jeff Bezos said that there have been greater than 100 million Prime members worldwide.
Prime members individually spend greater than twice as a lot on Amazon annually than non-members. Amazon clients who don’t belong to the Prime service spend about $600 on common annually. Prime members spend roughly $1,400 per 12 months or 133 % greater than non-members.
Even when Prime members and non-members purchased the identical merchandise, nevertheless, that doesn’t imply Amazon makes 133 % extra money from Prime members, as a result of the, ahem, prime cause many individuals join Prime is free of charge two-day delivery for a lot of merchandise listed on the location. So Amazon’s delivery prices could be deducted from the revenue. Whatever the revenue per transaction, nevertheless, Prime members are beneficial for Amazon due to gross sales quantity. If it’s recognized for something, Amazon is thought for quantity, which provides the corporate the inducement to amass as many Prime members as it might probably.
“Amazon grew to over 100 million U.S. Prime members within the quarter,” mentioned Josh Lowitz, CIRP companion and co-founder. “Membership progress has slowed however continued steadily within the vacation quarter. U.S. membership grew 10 % prior to now 12 months, slower than earlier than, however nonetheless important on an enormous base and after years of speedy progress. Membership doubled in three years, and nearly quadrupled in 5 years, from 26 million members in December 2013.”
CIRP additionally surveyed U.S. Amazon Prime clients about the kind of membership payment fee construction they used. There have been three reply selections: Annual, month-to-month, and different. Clients who answered the query with “different” both had a free trial, shared a membership, or didn’t understand how they paid. Based on CIRP’s survey, 58 % of the respondents paid yearly, 36 % paid month-to-month, and seven % had been on a free trial, a shared membership, or didn’t know.
CIRP’s survey concerned 500 U.S. clients who bought on Amazon from October to December 2018.