Amazon should generate more than $78 billion from Prime members this year
Roughly 65 million US Prime members spend an average of $1,200 per year.
An analysis by Consumer Intelligence Research Partners (CIRP) reports that Amazon Prime has 65 million US members. That’s up from 63 million Prime members in July.
According to the firm, 52 percent of US Amazon customers are Prime members. That number remains unchanged from figures released by CIRP in July. The firm also points out that Prime membership growth has slowed to three percent sequentially vs. seven percent last year.
A year ago, Amazon had roughly 47 million Prime members, according to CIRP.
Prime members spend $1,200 per year vs. $600 for non-member customers. Previously, the firm estimated that non-Prime members spent on average $500 at Amazon annually.
If CIRP’s figures are accurate, revenue from US Amazon Prime customers should reach $78 billion this year. Amazon’s full-year 2015 revenues were roughly $107 billion.
CIRP also estimates that 19 percent of Prime members pay $10.99 monthly, instead of $99 per year. The monthly installment option was introduced in the first quarter this year.
Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.