20% of US residents belong to Amazon Prime
October 25, 2016 02:23 PM
20% of the U.S. population has an Amazon Prime membership.
That’s according to a just-released report from securities research firm Consumer Intelligence Research Partners LLC, or CIRP. Amazon.com Inc. doesn’t release the number of Prime members it has, but based on a survey of 500 U.S. shoppers who bought on Amazon from July-September, CIRP estimates Amazon now has 65 million Prime members as of Sept. 30. Prime customers pay $99 for an annual subscription that gives them such benefits as free two-day shipping, streaming video and music services and other perks.
That 65 million represents year-over-year growth of 38.3% from 47 million this time last year, and 3.2% from 63 million through the second quarter ended June 30. Co-founder Michael Levin says CIRP measures the number of individual Prime memberships.
To put that into perspective, the United States Census Bureau calculates the U.S. population at just north of 324.7 million, which means approximately 20% of all U.S. residents have a Prime membership. Among all Amazon shoppers, 52% are Prime customers, according to CIRP. Amazon is No. 1 in the Internet Retailer 2016 Top 500 Guide.
“As Amazon starts to reach a limit of available U.S. households, it saw its annual growth rate decline a bit,” said Josh Lowitz, co-founder of CIRP. “Sequential growth, from the June 2016 quarter, also slowed, to 3%, compared to 7% in the June 2015 to September 2015 quarter, which benefitted greatly from the inaugural Amazon Prime Day.” Last year, Amazon held its first-ever Prime Day sale to celebrate its 20th anniversary. The sales holiday was also aimed at getting new shoppers to sign up for Amazon Prime.
According to CIRP, Amazon Prime members are still spending twice as much on Amazon per year as non-Prime members ($1200 compared to $600). Amazon will release its third quarter earnings on Thursday.
On Tuesday, Amazon expanded the number of products it offers for orders placed using its Dash Button, a WiFi connected key fob that allows shoppers to reorder products at the touch of a button. There’s a reason for that—The Dash Button is becoming increasingly popular among consumers who have it. Daniel Rausch, director of Amazon Dash, said shoppers have placed five times more orders using the Dash Button this year than they did last year. Amazon launched the Dash Button in March 2015.