Amazon.com Inc. has 105 million members in its Prime loyalty program, according to new estimates from Consumer Intelligence Research Partners (CIRP).
This is 4 million more U.S. consumers than CIRP’s membership estimate in January. Prime members are roughly 57% of Amazon shoppers, according to CIRP.
Amazon does not disclose how many Prime members it has by country; however, in 2018 it said it had more than 100 million globally. CIRP bases its estimates on survey from 500 U.S. consumers who made a purchase on Amazon April-June 2019.
There are approximately 127.59 million households in the U.S., according to the U.S. Census Bureau. As many Prime customers share their memberships with their households, Amazon’s foothold on U.S. shopping may be much stronger than just its membership number. Factoring in the households number and the 105 million members suggests that 82% of households have a Prime account. (This does not take into account households that may have multiple individual Prime accounts.)
Prime membership is up significantly from 2015, although growth is slowing, according to CIRP. For Amazon’s inaugural Prime Day sales event in 2015, which was to celebrate its 20th anniversary of business, it had less than 45 million members.
“In the past year [members] grew 11%, compared to 43% from the first to second Prime Day and 35% from the second to third,” ” said Josh Lowitz, CIRP co-founder. “The most recent annual growth rate is down very slightly from 12% for June 2017 to June 2018.”
Prime Day deals are only available to members of Amazon’s Prime loyalty program, which now costs $119 annually in the U.S. Although, some shoppers may have a lower rate if they are low income consumers or students, and some shoppers opt for a monthly membership. With Prime, U.S. members get expedited shipping on their orders, access to streaming music and video content, among other perks. More members means more sales for Amazon for its two-day Prime Day sale July 15-16. Internet Retailer estimates that sales for the 2019 event will jump 46%, compared with Prime Day 2018, and generate more than $6 billion in sales.
Prime members are important to Amazon because Prime customers shop more often and spend more money with Amazon than Amazon customers who are not Prime members. Prime members spend an average of $1,400 annually on Amazon, whereas customers who are not a part of Prime spend about $600, according to CIRP data from 2018.
Amazon is not the only retailer with a large, paid membership base. Warehouse club retailer Costco Wholesale Corp. reported it had 94 million global members in its 2018 fiscal year annual report.
Amazon is No. 1 in the Internet Retailer 2019 Top 500, and Costco is No. 15.Favorite