Amazon grows its Prime membership over the holidays
December 28, 2015 03:06 PM
The holiday shopping season proved to be Prime time for Amazon.com Inc.—literally.
Amazon, No. 1 in the Internet Retailer 2015 Top 500 Guide, says more than 3 million customers signed up for its Amazon Prime loyalty program during the third week of December alone. The $99 a year subscription program includes free two-day shipping on millions of products, plus free streaming video, streaming music and other perks.
Amazon does not disclose the number of Prime customers it has, but based on an estimate from Consumer Research Intelligence Partners that Amazon had 47 million Prime members as of Sept. 30, that 3 million figure would represent growth of 6.4% in the program during that week. Amazon says Prime customers bought more products than ever during the holiday season, though the company did not specify a dollar figure or a number.
It’s a week that could prove lucrative for Amazon in the long run. A study from website traffic measurement firm Millward Brown Digital released in June put conversion rates among Prime members at 74%. Meanwhile, a report from Macquarie Research investment analysts projects that Amazon will do an estimated $9 billion in sales from new Amazon Prime members this year.
The online retail giant noticed a shift in consumer behavior from desktop to mobile during the holiday shopping season. Amazon says shoppers buying through its mobile app doubled year over year, while almost 70% of customers visited its site from a mobile device.
For the holiday shopping season, Amazon also reports:
- 200 million more products shipped for free to Prime customers this year compared with 2014
- Shoppers were receiving products until the literal last minute before Christmas. A shopper in San Antonio, Texas, received a Prime Now delivery at 11:59 p.m. on Christmas Eve.