Amazon Prime membership in the US now at 41 million: report

Dive Brief:

Just a million people signed up for Amazon’s Prime membership in the first quarter of this year, even after some 10 million tried the program for free over the holidays, according to new research from Consumer Intelligence Research Partners. The report found that Amazon Prime has some 41 million U.S. members, up from 40 million at the end of 2014. Officially, Amazon doesn’t itself release these membership numbers.
Prime members are apparently spending less these days; Consumer Intelligence Research Partners found that each Prime customer is spending an average $1,100 annually compared to $700 on average by non-members. Last quarter Prime members spent an average $1,500 annually, non-members $625.
Amazon’s Kindle-owning customers also spend more each year than non-Kindle owners. Some 34% of Amazon’s customers own a Kindle, the company’s e-reader.

Dive Insight:

It’s no surprise that spending or even Prime membership signups would dip the quarter after the winter holidays. But the finding that just one million of 10 million stayed with their Prime membership trials is interesting.

The $99-per-year program comes with a lot of perks, including two-day shipping on many items, television and music streaming services, photo storage, and in certain areas, same-day delivery. All that has taken much of Amazon’s focus and resources, which aims to boost its fortunes via its higher-spending Prime members.

“We think that 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,”says Consumer Intelligence Research Partners co-founder Josh Lowitz. “Given this Prime customer acquisition reality, the net result is in a small increase in members relative to the holiday quarter.”

But it’s clear now why Jeff Bezos attempted an Amazon-branded phone, considering that Kindle tablet owners spend $1,300 each year on average, compared to $650 from those without a Kindle, according to Consumer Intelligence Research Partners. (Perhaps Bezos should’ve called it a “Kindle phone,” rather than “Fire.”)