A Look at Amazon’s Prime Membership



How Prime membership is growing

Amazon (AMZN) has never been vocal about the total number of members using its Prime services, but early this year, Consumer Intelligence Research Partners (or CIRP) released an “analysis of buyer shopping patterns for Amazon.”

The report said, “Amazon Prime now has 54 million U.S. members, spending on average about $1,100 per year, compared to about $600 per year for non-members.”

In its latest quarter, Amazon mentioned that its worldwide Prime subscriptions rose by 51% YoY (year-over-year) in 2015. Prime subscription growth was 47% in the United States, meaning that international Prime subscriber growth was better. Prime is now present in most major countries, except for Mexico, India, and China (FXI).

Article continues below advertisement

How Amazon drives Prime membership

Prime is Amazon’s $99 per year program that offers customers fast shipping at no additional cost. Subscribers also get to watch thousands of on-demand videos for free with this program.

Last year, Amazon launched its first Prime Day, offering exclusive lightning deals to its Prime members for a day. The company stated that it surpassed its profits from the previous year’s Black Friday, recording 398 items ordered per second.

The company reported 266% growth in worldwide orders compared to the previous year’s Black Friday. Customers purchased more devices than ever before in a single day. Additionally, the number of new members subscribing for Prime membership that day was the greatest in the company’s history.

The PowerShares NASDAQ Internet Portfolio ETF (PNQI) is a portfolio of 94 stocks. Its four top stocks are Amazon, Facebook (FB), Alphabet (GOOG), and Baidu (BIDU), which constitute 9.5%, 8.1%, 7.7%, and 7.5% of the fund, respectively.


More From Market Realist