Amazon Prime membership hits 41 million in the US
June 9, 2015 12:02 PM
Amazon.com Inc.’s Prime two-day shipping and loyalty program has 41 million members in the United States, a slight increase from earlier this year, according to the latest estimate from Consumer Intelligence Research Partners LLC, or CIRP.
The market research firm also estimates that as of March 31, 42% of Amazon’s U.S. customers belong to Prime, whose members also receive such perks as free streamed TV shows and movies and music. That compares to an estimate of 45% of Amazon’s U.S. consumers belonging to Prime as of the beginning of the year, when Prime had an estimated 40 million members, a decline the firm attributes to holiday trial memberships that expired
“Amazon Prime membership held steady in the March 2015 quarter,” said Josh Lowitz, partner and co-founder of CIRP. “We think the influx of new Amazon Prime members in the holiday quarter of 2014 included an unsurprising percentage of shoppers that did not continue their membership following their 30-day free trial. Given this Prime customer acquisition reality, the net result is a small increase in members relative to the holiday quarter.”
Amazon, No. 1 in the Internet Retailer 2015 Top 500 Guide, did not immediately respond to a request for comment on the findings, though the e-retailer typically does not confirm specific numbers for Prime memberships.
Consumer Intelligence Research Partners also finds that the average Prime member spends $1,500 annually with Amazon. That compares with about $700 per year for other Amazon shoppers. The research firm bases its findings on a survey of 500 U.S. consumers who bought from Amazon between January and March.
The research firm’s latest estimates also find:
• 34% of Amazon customers in the United States own the e-retailer’s Kindle tablet or e-reading devices.
• 5% of Amazon’s U.S. customers own a Kindle Fire TV box or stick.
• Less than 1% of Amazon customers own Amazon Fire smartphones or an Echo, a voice- controlled interactive speaker launched last year that lets customers stream music and search the Internet.
When it comes to spending, Kindle owners spend $1,300 annually with Amazon, the research firm says. That compares with $650 per year for those Amazon customers who do not own Kindles.
In related news, Amazon today says it will open its fourth fulfillment center in Texas, this one a 500,000-square-foot facility in Dallas. The warehouse will handle “smaller items such as books, electronics and consumer goods,” Amazon says without detailing when the building will open. Amazon’s other Texas warehouses are in Coppell, Haslet and Schertz.
Amazon operates 85 fulfillment, sortation, returns and similar centers in the United States, according to a recent estimate from Colin Sebastian, e-commerce analyst at Robert W. Baird & Co.
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