The surge in popularity over the years of Amazon.com, Inc. AMZN's Prime membership program has proven to be a successful one for the company, Statista reported.
Amazon's Prime membership kicked off back in 2005 for a yearly cost of $79 but has since been raised to its current annual fee $99. Over the same time, Prime members have been treated to many perks, including speedy delivery, video and music streaming platforms, photo storage and more.
Amazon doesn't disclose the exact number of Prime members on its platform, but a recent estimate from Consumer Intelligence Research Partners pegs the number at 90 million, Statista said. This represents an almost two-fold increase from just March 2015 when there were just 47 million members on the platform.
More importantly, a Prime membership is intended to create loyal customers to Amazon's platform which in turn results in consumers spending more money. And it works as on average, a Prime member spends $1,300 a year on Amazon compared to $700 for non-members. This may explain why Amazon is eager to continue adding benefits to a Prime member since the $600 spending difference multiplied by an estimated 90 million Prime users is no doubt a lot of money.
Related Links:
Amazon's 'Secret Sauce' Earns It A New Buy Rating From Wall Street
UBS Revisits The Amazon Ecosystem, Raises Price Target On Stock To $1,200
_________
Image Credit: By Paul Sladen (Own work) [CC0], via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
