Written by: Roshan Dwivedi
Third-party companies, based on speculation have come up with some statistics on how many subscribers are there for the Prime membership program. Consumer Intelligence Research Partners (CIRP), an agency that has been studying Prime for years, in its recent report, shows that more users are enrolling after the introduction of a monthly Prime plan. As per a research study, Prime membership grew by 8% in 1Q17 as opposed to 7% in 1Q16. At the end of the quarter, the figures were 80 million Prime subscribers in the United States which is up from 58 million (last year).
According to the report, 26% of US Prime subscribers have enrolled in a subscription plan amounting to $11 which suggests that membership recruitment is being driven by the budget plan. Standard Prime membership amounts to $99 and retail subscription revenue costs $1.9 billion in 1Q17. This amount included Prime membership fees. Prime is essential for Amazon’s competition as it’s a driving factor for retail as well as non-retail sales such as its advertising business. CIRP estimates that average annual spending by a Prime member on Amazon.com is $1300 which is twice the average spending of a regular Amazon shopper at $700. Prime is additionally enabling Amazon to build a loyal customer base to help it compete against eBay, Walmart and Target Read More.