Amazon’s Prime service has evolved a lot in the past years, but it appears that it will reach an important milestone next year. If you are not aware yet, this membership program offers users several benefits, including discounts for some products, two-day shipping for free and other services such as Amazon Music and Amazon Prime Video.
The latest eMarketer data reveals that 2019 should be a big year for Amazon. It is estimated that more than half of the American households will become Prime members the following year. More precisely, the number of members will rise to 63.9 million in 2019.
Back in 2016, there were 43.6 million members on Amazon Prime (35.6% of the American population). In 2017 the number went to 52.1 million (42.4% of the American households), and this year there were 58.7 million (47.4 % of the American households). It is estimated that the number will go up to 63.9 million next year (51.3%) and 68.7 million in 2020 (54.8%)
Prime membership is very important for Amazon because it has been proved that Prime members are more likely to spend money on Amazon products compared to non-members. Therefore, the rise for Prime members also represents a major boost for Amazon’s sales.
The Consumer Intelligence Research Partners revealed that non-Prime members spend an average of $600 per year on Amazon, while prime members spend an average of $1400, which is more than double.
In addition to that, it was also discovered that members tend to spend more money the longer they maintain their Prime membership. The Consumer Intelligence Research Partners also revealed that those who are members for more than three years, tend to spend around $1500 on Amazon purchases. Therefore, more Prime members definitely means more profit.
Agnes is a technical writer, being in touch with reports to come up with the latest tech leaks.