Good news for Amazon: A new study has found that Amazon Prime subscribers spend an average of $1,300 per year – and that its subscriber base continues to grow their spending.
According to Fortune, the Consumer Intelligence Research Partners (CIRP) estimates that Amazon currently has 90 million U.S.-based Amazon Prime subscribers. In fact, 63 percent of the eCommerce retail giant’s customers are Prime members, and in the past 12 months, the total subscriber base has grown by 38 percent.
The study, which includes data from 500 Amazon customers, estimates that Amazon Prime subscribers spend almost double the $700 per year the average non-member spends on the site.
In addition, those with an Amazon Prime membership are happy with the perks they’re getting as subscribers, which includes free two-day shipping, discounts on overnight delivery, access to Amazon’s streaming video library, free eBooks and more. The study found that 95 percent of current Prime subscribers say they’ll either “definitely” or “probably” renew, up from 94 percent during the same period last year.
At 90 million subscribers with each paying $99 per year, Amazon generates nearly $9 billion in revenue from the Prime program – and that’s before the customers even make a purchase.
And those numbers are expected to grow. An earlier report from Morgan Stanley predicted that subscriber base is expected to grow, stating that approximately 38 percent of Whole Food customers, which equals about 5 million shoppers, are not yet Amazon Prime subscribers.
“We expect Amazon to convert half of these shoppers between now and the end of 2019,” analyst Brian Nowak wrote. “We see [Amazon’s] Prime member growth and engagement, Echo device sales and consumer web traffic [and] interest driving solid top line trends and [gross merchandise volume] GMV per customer growth.”