US Prime Membership Increases to 54 Million Members
Consumer Intelligence Research Partners (CIRP) today released analysis of buyer shopping patterns for Amazon, Inc. (NASDAQ:AMZN) for the October-December 2015 quarter.
This analysis indicates that Amazon Prime now has 54 million US members, spending on average about $1,100 per year, compared to about $600 per year for non-members. The current membership estimate compares to an estimated 40 million US members at the end of 2015, or an increase of 35%.
As of December 31, 2015, CIRP estimates that in the US, 47% of Amazon customers are Prime members, which translates to about 54 million Prime members (Chart 1).
US Amazon Prime membership increased steadily in 2015. Amazon added a net 7 million members in the holiday quarter of 2015, and 14 million members in all of 2015. Notably, the growth was spread more evenly across the year, in a large part due to the success of Amazon Prime Day on July 15.
In December 2015, membership grew 35% relative to the December 2014 quarter. In December 2014, Amazon Prime membership grew 54% relative to the December 2013 quarter.
While Amazon Prime continues to grow nicely, growth slowed somewhat compared to earlier periods. We expect this, as the program matures in the US. So, member retention becomes even more important. Many see free two-day shipping as the primary reason customers try Amazon Prime, enhanced streaming video and other offerings provide added incentive for members to continue to renew.
CIRP bases its findings on surveys of 500 US subjects who made a purchase at Amazon.com in the period from October-December 2015. For additional information, please contact CIRP.