Report: Prime members in US will spend $75 billion on Amazon this year

Greg Sterling on
  • Categories: Amazon, Channel: Retail, E-Commerce
  • A day before Amazon’s second “Prime Day,” a kind of Black Friday for Prime members, Consumer Intelligence Research Partners (CIRP) released data that argue Amazon Prime now has 63 million members in the US.

    Each Prime member, according to the analysis, spends on average $1,200 per year. This compares with non-Prime members who spend $500 per year approximately.

    One year ago CIRP estimated that Amazon had 44 million Prime members in the US. The firm reports that 52 percent of US Amazon customers are now Prime subscribers.

    Growth of Amazon Prime Membership in the US

    If the figures above are correct, Amazon will generate more than $75 billion in 2016 revenue from US Prime members. The company’s full year 2015 revenues were just over $107 billion.

    Recognizing the value and spending patterns of Prime customers, Amazon created Prime Day last year as an incentive to capture new Prime members. CIRP says that Amazon added 19 million new Prime members since last July.

    Prime membership costs $99 per year. Amazon recently introduced a monthly payment plan and separated out Prime Video as a stand-alone subscription option. According to CIRP, roughly 22 percent of Prime members who joined in Q1 2016 are monthly subscribers.

    About The Author

    Greg Sterling
    Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.