The tech giant now counts 90 million U.S.-based Amazon Prime subscribers, researcher Consumer Intelligence Research Partners (CIRP) estimates. The company’s study, which includes data from 500 Amazon customers, estimates that Amazon Prime subscribers spend $1,300 per year, nearly doubling the $700 per year the average non-member spends on the e-commerce site.
According to CIRP, 63 percent of Amazon’s customers are Prime members, and in the past 12 months, the total subscriber base has grown by 38 percent.
Amazon Prime is a $99-per-year service that gives the company’s customers free two-day shipping and discounted rates on overnight delivery. Prime customers also get access to Amazon’s streaming video library, free e-books, and more.
For Amazon, the value is clear. At 90 million subscribers each paying $99 per year, the company generates nearly $9bn in revenue before those customers even buy a single product. And since they spend an average of $600 more per year than their non-member counterparts, they also appear to be loyal customers that help Amazon’s bottom line.
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