Amazon Prime’s popularity skyrocketed thanks to the variety of perks it offers to its members. Free shipping, unlimited photo storage, video on demand, discounts, and early Prime Day access are only some of the reasons why people love it. Let’s find out just how many people have Amazon Prime and how the future looks for this subscription service.
Ecommerce has been on the rise for years now, and Seattle’s Amazon is the worldwide leader, having even become a symbol of the Emerald City alongside the Space Needle. With rapid urbanization and the global pandemic that started in 2020, many of those who were reluctant tried it and fell in love with the perks, on top of all the safety benefits. In October 2020, Amazon’s stock was at an all-time high. What does that mean in terms of Amazon users?
The leading online retailer is growing at a breakneck pace, making it hard to keep track of its customer base. The latest data on the website shows the number of Amazon customers is over 300 million, with no specific number having been reported officially for a couple of years. CNBC meanwhile tracked their report from 2016, where they found that the Amazon number of customers was already over 310 million. We expect the company to provide another statement when its user base reaches the 350 million customers milestone.
When we look at the number of Amazon Prime users who sign in to their accounts at least once a year, we see steady growth. In 2020, there were 142.5 million Amazon Prime subscribers in the US alone. The projections for the next couple of years point to over 10 million more, with the number reaching 153 million in 2022.
The adoption rates in older internet users have been soaring since the beginning of the pandemic, but people aged 18-34 are still the most prominent users. According to the latest Amazon user statistics, the said group’s penetration rate is 81% of all US internet users. For users 35-54, it’s 68%, while it’s 60% for the group over 55.
And what do we mean by an increase “as a consequence of the pandemic?” Sales statistics compare data from June and April 2020, and we can see Amazon’s levels went through the roof. Interestingly, growth is the same with the youngest and the oldest users — 11%. The middle category saw a 5% increase.
The US is the company’s leading market, accounting for over 68% of its net profits in 2020. That’s $263.52 billion in revenue. Germany ranks second with $29.57 billion and a 7.65% share of the market. The UK is third with $26.48 billion in revenue or a 6.85% share.
Japan is another important market for Amazon, being the fourth on the list with $20.46 billion and a 5.29% share. Everything else categorizes under “the rest of the world” and accounts for $46.04 billion, or an 11.92% share of the company’s market.
The latest data shows that in 2019, 66.4 million US households were using Amazon Prime services. While there is still no released number of new subscribers for 2020, projections based on data from previous years suggest that by the end of the following year, these services are estimated to reach over 10 million more US households, totaling 76.6 million.
In December 2020, there were over 3.1 billion website visits on desktop and mobile devices combined. That’s a milestone and an all-time high, while the usual monthly traffic continuously stands above the 2-billion mark for years now.
Those numbers exclude the traffic from the Amazon app, though. Considering it was the top downloaded shopping app in 2020 worldwide (169 million) and in the US (41 million), we can safely conclude that mobile commerce is another trend here to stay.
(Similar Web, Statista, Apptopia)
The 48-hour long event has turned into a summer version of Black Friday in terms of discounts, promotions, and offers. Because of the coronavirus pandemic in 2020, however, it was delayed until 13-14 October. The event was available in 19 countries worldwide.
Consumers saved the total amount of over a stunning $1.4 billion through various deals. The US report shows the most popular category was electronics, as 32% of shoppers had bought some electronic device on sale.
The global music streaming market grows as Cloud changes the digital music experience, and as of Q1 2020, there were over 400 million subscribers worldwide. Spotify and Apple Music are the leaders in a very competitive market, but Amazon got another achievement in 2019 — it became the fastest-growing music streaming service. The latest data points to 56 million subscribers and a 14% share of worldwide cloud streaming services.
A survey conducted in the US examined various factors that make customers loyal to Amazon. Almost 80% of Amazon customers believe fast and free shipping is the most important variable in their decision to shop there.
68.9% said the reason is simply the company’s broad selection and finding anything they need. The number of Amazon Prime members was also essential for this survey’s purpose, as 65.7% stated that as the main reason. Pricing, easy return process, and overall digital experience were also ranked high for over 40% of customers each.
User-generated content is among the crucial aspects of ecommerce, so reviews play a huge role. When asked about their shopper experience on Amazon Prime, the number of users reporting to read product reviews regularly was a bit over two-thirds, 67% exactly. But not everyone also leaves reviews, as we can see only 44% report doing so.
(Digital Commerce 360)
There are not too many brands keeping up their standards for over a quarter of the century and, if anything, making the conditions better. The following fact is simply astonishing in terms of the success of a business — customer retention rates of Amazon are maintained at over 90%.
A 35% retention rate is considered excellent in ecommerce in general, so Amazon’s success is undeniable. A meaningful user journey the company provides results in 93% of customers extending their yearly subscription and a whopping 98% for members of over 2 years.
(Digital Commerce 360)
Even though we’ve mentioned Germany as an important market, Amazon’s game is still weak in most of Europe, as not many countries can use the services. After launching in the US in 1995, the US ecommerce giant’s European timeline looks like this:
There are about 300 million unique monthly visitors reported on the company’s websites for these markets. In Germany and the UK, it’s the biggest player in the ecommerce market, with about a 30% share in each country.
(Ecommerce News, Pattern: Europe Ecommerce Report)
Amazon’s business model is an example of good practice, whether you’re looking to sell on the platform, advertise your brand, or both. It’s expanding the services, territory, and features it offers for over 26 years, one step at a time. The focus on personalization creates a unique customer journey. That’s even more emphasized for Amazon Prime subscribers, so projections show Prime is the future of this ecommerce giant. Considering the number of subscribers the program already has, we sure believe so.