Amazon has traditionally remained mum on the number of customers enrolled in its $99/year Prime membership program, but a new report from Consumer Intelligence Research Partners (CIRP) is shedding some light on the subject.
According to back-of-the-napkin estimates by the research group, Prime probably has about 63 million U.S. members now, each spending about $1,200 a year on average, vs. an average annual spend of $500 for non-members.
What’s truly startling is that if CIRP’s numbers are accurate, more Amazon customers (52 percent) are now Prime members than non-members as of the second quarter, thanks to an increase of 43 percent (19 million net new U.S. members) year over year.
What’s the attraction? According to CIRP partners and co-founders Josh Lowitz and Mike Levin, Amazon began promoting the service aggressively beginning with the first Prime Day last year, and continues to do so with a monthly membership payment plan, chosen by 22 percent of new Q2 members, and exclusive product offers and enhanced services, like unlimited personal photo storage, original video content, and tighter integration of Prime Music and shopping on Alexa devices.
CIRP based its figures on surveys of 500 U.S. consumers who made a purchase at Amazon during the second quarter.