Amazon Prime Memberships Jump 38% in a Year, But Analyst Expects Slower Growth

Amazon Prime’s U.S. member count jumped 38 percent year on year to reach 80 million at the end of March, said a Tuesday Consumer Intelligence Research Partners analysis of Amazon shopping patterns. Prime members' annual spend was $1,300 at the end of March vs. non-Prime members' $700 average spend, it said. CIRP partner Josh Lowitz called Q1 a “surprisingly strong quarter” for Prime additions, saying “slower growth is expected” as Prime growth reaches natural limits. Lowitz cited Amazon’s December earnings release, disclosing $6.4 billion in worldwide retail subscription services, which includes Amazon Prime fees and various digital media subscription fees. CIRP estimates 26 percent of Amazon Prime members pay monthly for a membership at $10.99 vs. the yearly $99 fee. The smaller dollar, single-month payment option helps with retention rates, said Lowitz, citing an 85 percent Prime member renewal rate. Data is based on a survey of 500 U.S. customers who made an Amazon.com purchase from January to March.