Amazon.com, Inc. (NASDAQ:AMZN)’s Prime now claims 46% of U.S. households
Amazon.com, Inc. (NASDAQ:AMZN)’s Prime membership loyalty program is proving to be irresistible. More and more Americans are signing up for the program and the latest estimate says 46% of U.S. households are Prime members. Amazon’s Prime membership comes with multiple benefits including free-two day delivery, online video streaming and cloud storage for photos. Prime costs $99 a year and it is credited for customer loyalty on Amazon’s retail platform.
Amazon.com, Inc. (NASDAQ:AMZN) has a vague way of updating about Prime membership, usually saying that millions of people are already enrolled for the service. However, independent analysts now say that in terms of the number of members, close to 21% of Americans are Prime members. According to, Consumer Intelligence Research Partners (CIRP), 46% of the U.S. households has signed up to Amazon’s Prime program. Some other estimate put the penetration of Prime at 41% of the U.S. households, but still a large number.
Although Amazon chooses to keep official Prime numbers close to its chest, CIRP says that Prime membership is expanding so fast. For example, it says back in September 2014 the service had 29 million members, but at the end of 2015, its membership was more than 44.7 million.
How they use the service
Prime membership comes with many benefits, with the core being the free-two day shipping service. It seems most of those signing up for Prime are attracted by its free shipping service. CIRP says that 47% of Prime members in the U.S. use the service to benefit from free shipping. That compares to 40% that is interested in online streaming services bundled in the program.
The reason Amazon ticks
Prime has been cited as a key reason Amazon.com, Inc. (NASDAQ:AMZN) is successful as an online retailer. Because of the free shipping benefit, many people come to shop at Amazon first before they consider any other Internet-based retailer. Additionally, Prime members are said to spend more on Amazon on average compared to non-members.
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