Amazon Prime’s popularity skyrocketed thanks to the variety of perks it offers to its members—free shipping, unlimited photo storage, discounts, and early access to Prime Day are only some of the reasons why people love the program.
Expected to add $18 billion to Amazon’s bottom line by the end of the decade, the membership program is the heart of the ecommerce giant’s business. Let’s find out how many people have Amazon Prime and how the future looks for this subscription service.
Thanks to the new benefits that roll out and the existing ones that users love, Amazon Prime notes an expansion in memberships. At the moment, it’s available to users in 17 countries across North America, Asia-Pacific, and Europe. Join us as we answer the most frequently asked questions regarding Prime’s user base.
In its 25 years of existence, Amazon has reached many milestones and set industry standards. The leading online retailer grows at an incredibly fast pace which makes it hard to keep track of its customer base. However, according to the last reported period, Amazon has over 310 million active customers.
Amazon is by far the most popular shopping app in the US. As ecommerce statistics have shown, it holds nearly half of the US ecommerce market or 5% of all ecommerce sales. What is more, in November 2019, it was reported that 150.6 million mobile users accessed Amazon. It’s interesting to note that the second-ranking app, Walmart, has a significantly lower user base at 86.05 million users.
Amazon Prime reached an impressive milestone in 2018 reaching 100 million subscribers. A big part of this growth is thanks to the service’s expansion to countries like Mexico, Luxembourg, Netherlands, and Singapore.
Amazon Prime doesn’t publicly disclose the number of users per country. However, research conducted by CIRP has estimated that there are 105 million Prime users; up from 95 million in June 2018. The average user spent $1,400 per year. Another research from 2019 shows that 55% of the US consumers are currently subscribed to Prime, 15% are former subscribers, while 31% aren’t Prime members.
According to Amazon statistics, 63% of all users of the platform are Prime members. Users apparently love this service because of the many benefits it offers. With the membership, you can stay up to date with Prime Reading, catch up on Amazon Original series, listen to Prime Music, and much more. No wonder it has gained such popularity!
A Reuters report has stated that there are more than 26 million Prime Video subscribers. The on-demand service was used by 35% of adult consumers in the US by the end of 2018. When it comes to leading streaming services in the US by reach, Amazon Prime is ranked sixth with 9.7%.
A report conducted by Tinuiti shows that Amazon Prime members appreciate free shipping most. The membership costs $120 a year and there are many benefits beyond free shipping such as unlimited cloud storage, shopping benefits, free books, music, TV, movies, and more.
Prime has a huge satisfaction rate. Most of the customers are loyal members of Amazon’s subscription service with a whopping 76% of them saying it’s very likely and 19% somewhat likely to renew their membership.
Amazon has a bespoke customer retention rate. As per customer retention statistics, after the first year of subscriptions, Amazon Prime boasts a 93% retention rate. This percentage increases to 98% after two years. These portions are quite impressive especially if we take into account the customer loyalty statistics which show that loyal customers spend 67% more than new ones.
Americans love what Amazon Prime has to offer! Over half of US-based households are subscribed to Amazon Prime which is an increase of 5.2 million households since 2018. Emarketer predicts that this number will continue to grow, reaching 56.9% of all homes in the US.
Sales statistics show that retail culture continuously evolves with nearly 60% of consumers buying online at least once in a few weeks. Prime members have become a critical audience to reach since they are quite active and loyal consumers. For example, 18% of them buy products online a few times a week, 14% do that once a month, and 9% of them on a daily basis.
As per the latest mcommerce statistics, mobile accounts for over 40% of all ecommerce sales in the US. Surprisingly enough, the majority of Prime members (62%) prefer shopping via computer compared to 27% who use smartphones and 10% who use tablets.
The shopping holiday hosted by Amazon lasts 36 hours and it’s exclusive to Prime members. In 2017, a total of 53 million US consumers purchased a product on Prime Day. What is more, statistics have shown that that was the day when most members joined Prime compared to any other day of the year.
The subscription program helps Amazon maintain a loyal base of customers who are willing to pay for the many benefits they enjoy. During a week of this holiday season, Amazon prime has acquired at least 5 million customers. They have either started a free trial or a paid membership.
Projections show that Amazon Prime is the future of this ecommerce giant and considering the number of subscribers the program has, we sure believe it. Not only do Prime members spend twice the amount that non-Prime customers do, but the purchasing volume of Prime members is growing while purchasing volume for non-Prime customers is continuously decreasing.