As Amazon Prime membership continues to grow, the site itself is reaping the benefits. On Wednesday, Consumer Intelligence Research Partners (CIRP) released the results of a study which show that 90 million US consumers are now Prime members. On average, those members are spending nearly $1,300 a year, while non-Prime shoppers are spending $700 in a year. According to the study though, 63% of Amazon customers are Prime members.
“Amazon Prime membership continued its steady growth as in recent quarters,” said CIRP co-founder Josh Lowitz. “Membership grew 6% in the most recent quarter, the same rate as in the June 2017 quarter, and better than the 3% in the year-ago September 2016 quarter. Over the past twelve months, Prime grew by 38%, the same growth rate as in the same twelve-month period the year before, from October 2015 to September 2016.”
Three and a half years ago, Amazon raised the price of its Prime subscription service from $79 to $99 a year. Based on CIRP’s research, it doesn’t appear that the price bump has had much of an impact on the success of the program. In fact, CIRP says that in the latest quarter, 95% of the 500 Prime members surveyed said they were either “definitely” or “probably” going to renew their Prime subscriptions when they ran out.
Since last September, the number of Prime members who said that they “probably” or “definitely” would not renew has never crossed the 10% threshold. In other words, Prime members are extremely loyal. Once someone has taken the plunge, the chances that they will abandon Prime and start paying for shipping again are negligible.