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BizReport : Ecommerce archives : July 12, 2016

More than half Amazon's customers in US are Prime members

It is Amazon Prime Day and, for the first time ever, that means that more than half of the ecommerce giant's customers in the U.S. are eligible to participate.

by Helen Leggatt

According to Consumer Intelligence Research Partners, Amazon's Prime program now boasts 63 million members. That is more than half (52%) of all Amazon customers in the US and an increase of 19 million members within the past year.

Those Prime members pay $99 per year for the privilege and also receive free two-day shipping, access to free streaming video and audio and other services. They also get their very own Black Friday-esque shopping event - Prime Day (12 July 2016).

Last year, Amazon recorded orders for 34.4 million items worldwide on Prime Day, breaking its Black Friday sales records.

While Prime Day may outwardly seem a way to reward their loyal Prime members, it's also a valuable recruitment day for Amazon. Last year's Prime Day saw more new memberships in one day that in any other single day. And, Prime members spend more than others, averaging $1,200 per year compared to $500 among non-members.

Amazon is not the only retailer to have carved out a day for itself. The 11th day of the 11th month in China is when online retail reaches a frenzy thanks to Alibaba's 'Singles Day' (named due to the number of 1's in the date). Within the first hour of Singles Day 2014, US$2 billion was spent across both domestic and international retail marketplaces.

Tags: Amazon, China, ecommerce, trends, US

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