Amazon Prime is an unparalleled discount/loyalty club in the history of retail. In today’s Monday Morning Metrics, learn more about Amazon Prime including that more than half of all U.S. households will be Prime members by the end of 2019.
Amazon Prime is a juggernaut and will have over 140 million worldwide members this year and more than half (51.3%) of all U.S. households will be Prime members by the end of 2019.
Why is Amazon Prime so important to Amazon?
Not only does the program generate a ton of money for Amazon in subscription fees, but Amazon Prime members are also more valuable customers than non-Prime customers.
- Prime members spend an average of $1,400 per year vs. $600 for non-Prime customers
- Prime members shop on Amazon 26 times per year vs. 14 times for non-Prime customers
- Prime members spend $55 per visit vs an average of $42 per visit for non-Prime customers
- Prime members purchase 2.2 items on average per visit vs. 2 items for non-Prime customers
Total spending by Prime members in the US, then, would be $1.36 billion dollars.
Why do people subscribe to Prime?
There are many different reasons that attract subscribers to Amazon Prime. However, in the U.S., the leading answer in a recent survey is by far for Free Shipping. Other reasons include streaming services like Prime Video, Prime Music, and Twitch.
How much does Prime cost?
In the U.S., Prime started as a $79 service and then $99. In May 2018, the price became $119. But, around the world, you can see below that cost changes by country.
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