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Is Amazon Prime’s Growth Slowing?

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By Published On: January 22, 20190 Comments

While Amazon doesn’t disclose its Prime membership numbers by country, new research has revealed that its global sign-up rate is starting to slow.

Amazon currently reports its Prime membership base as being more than 100 million strong, however, details surrounding how many members there are in each country, and what its actual growth rate is are hazy. Consumer Intelligence Research Partners (CIRP) has estimated that the bulk of the online giant’s members are based out of the US (101 million as of December 2018), with the second half of 2018 seeing six million new members join its ranks.

According to the US Census Bureau, there are 126 million households in the United States; with CIRP claiming the bulk of these households are now Amazon Prime members (62 percent). Other estimates, however, put this figure much higher, at roughly 80 percent (this doesn’t take into consideration households that might have more than one membership).

Given these figures, the level of growth in the US is slowing down, with Amazon only increasing its membership base by 10 percent in 2018 compared to 2017. This is hardly surprising considering most US residents are already members, giving the platform limited potential with attracting new customers.

Prime customers are an asset to Amazon, with shoppers who choose to sign up to the loyalty program reportedly spending an average of $1400 per year, compared to non-members who spend $600 per year. To put this into perspective, in 2018 CIRP says that Prime members placed an average of 24 orders throughout the year, while non-Prime shoppers only placed 13.

In Australia, Amazon’s membership program is more limited than it is in the states, however, when it was first launched in mid-2018 the company said it had the most comprehensive suite of offerings at launch than it did in any other country. Despite this, Power Retail’s latest Spotlight Series report has revealed that of the 31 percent of Amazon shoppers who have actually made a purchase, only 22 percent of them have signed up for a membership. This gives Amazon a much bigger scope to grow its customer-base in smaller markets like Australia than it does in its primary US market.

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