Amazon trumpets Prime Day success despite myriad glitches and problems

But analyst firm says Prime membership growth has dropped from 35% to 12% and will continue to slow.

Chat with MarTechBot

Amazon Prime Box Shipping Mm 1920

The 36-hour ecommerce bacchanal called Prime Day got off to a rocky start yesterday afternoon, with glitches and crashes that frustrated many shoppers. People were still receiving error messages late into last night.

Today, all seems to be running smoothly as Amazon touted the growth of this year’s event. The company earlier tweeted, “In the first ten hours, #PrimeDay grew even faster, year-over-year, than the first ten hours last year.” Another tweet identified the bestselling products so far:

  • Fire TV Stick with Alexa Voice Remote
  • Echo Dot
  • Fire 7 Tablet with Alexa
  • InstantPot 6 Quart, 7-in-1 Multi-Use
  • LifeStraw, Personal Water Filter for Hiking

Amazon expanded the international reach of Prime Day this year. It’s available to Prime members in 17 countries: the US, the UK, Spain, Mexico, Japan, India, Italy, Germany, France, China, Canada, Belgium, Austria, Australia, Singapore, the Netherlands and Luxembourg. The last four are new additions for 2018. 

US Amazon Prime Members (millions)

Screen Shot 2018 07 17 At 11.44.51 AM

Amazon reports that it has “over 100 million paid members” globally. Consumer Intelligence Research Partners (CIRP) estimated that Amazon has 95 million Prime members in the US, who spend roughly $1,400 per year. That compares with about $600 per year for non-Prime Amazon customers. The firm also said that 59 percent of Amazon shoppers belong to Prime, which now costs $119 per year.

Prime Day has been instrumental in growing Prime’s Membership ranks since its inception. However, CIRP says that growth of Prime Memberships is now slowing. According to the firm, Prime grew 12 percent in the past year, down from 35 percent in the previous year.

Despite this slowing growth, the company’s revenues continue to climb. According to recent eMarketer estimates, Amazon is responsible for just under 50 percent of all online retail spending in the US.

Contributing authors are invited to create content for MarTech and are chosen for their expertise and contribution to the martech community. Our contributors work under the oversight of the editorial staff and contributions are checked for quality and relevance to our readers. The opinions they express are their own.

About the author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Fuel for your marketing strategy.