Amazon Prime is an uber-popular paid membership plan by Amazon. First launched in 2005, it offers perks like free premium delivery, member-only deals on eligible items, and unlimited access to exclusive streaming entertainment content on Amazon Music and Amazon Video. Over 200 million users in the U.S. and worldwide subscribe to one of Amazon Prime’s monthly or annual plans.
How many Amazon Prime members will keep their subscriptions in the upcoming years, and does the membership model still provide enough incentives to attract new users? Let’s see what statistics say.
- Amazon Prime boasts over 200 million subscribers, most of them in the U.S.
- Amazon makes about $25 billion each year from Prime subscription fees.
- In early 2018, Prime had 100 million users. This number has doubled by the end of 2022.
How Many Amazon Prime Members Are There?
Close to the end of 2022, Amazon Prime had about 153 million paying members in the United States. Some market authorities expect this number to grow to over 168 million by 2025.
- Amazon saw a massive increase in Prime members over the years: while in 2013, Amazon Prime only had 25 million U.S. users, in 2017, Amazon Prime approached the 100-million-member mark.
- At the beginning of 2022, Amazon Prime had 148.6 million U.S. subscribers, an increase of almost 50% compared to 2017.
- About 60% of American households use Amazon Prime.
- While most Amazon Prime users are U.S.-based, around 25% of Prime subscribers are international, spread across Canada, Mexico, the U.K., and other countries.
Amazon Prime Global Subscriptions
Currently, Amazon Prime has over 200 million global users—a number that nearly equals the entire population of Brazil. Prime’s memberships have doubled between 2018 and 2022. Although Americans still make up the lion’s share of Prime subscribers, Amazon has put a stronger focus on Prime’s global expansion in recent years.
- Since launching globally in 2016, Amazon Prime has become available to users from 23 countries, including Australia, Canada, India, Japan, and Turkey.
- 74% of all Amazon Prime subscriptions still come from the U.S.
- Of all the various Prime benefits, free shipping remains the number one incentive to subscribe for 90% of members.
Which Age Group Uses Amazon Prime Most?
Amazon Prime is most popular among U.S. young adults aged 20-29. 82% of Americans in this age group are Amazon Prime members.
- Prime’s demographics lean strongly towards younger users: 81% of Americans aged between 18 and 34 use Amazon Prime.
- The percentage of Amazon Prime subscribers drops to about 75% for users aged 50-59.
- Higher age groups have lower rates of Amazon Prime users: only 64% of Americans aged 70 to 79 have Amazon Prime memberships.
What Percentage of Amazon Customers Are Prime Members?
About 57% of all Amazon customers have Amazon Prime memberships. Although Amazon doesn’t divulge the exact numbers of Prime users by country, it’s easy to infer that most U.S. Amazon shoppers are also Prime members, while rates of Prime users are dramatically lower among shoppers from other countries.
- In mid-2016, only 52% of U.S. Amazon shoppers had Prime memberships. By September 2021, this number had climbed up to 65%.
- COVID-19 lockdowns prompted consumers to buy food on Amazon: In April 2020, a whopping 44% of Amazon Prime subscribers ordered food or drinks on Amazon.
- In the e-commerce boom of April 2020, 55% of American Prime users ordered apparel or accessories through Amazon.
- A 2019 survey revealed that 20% of Prime users shop on Amazon on a weekly basis, while 7% purchase through Amazon almost every day.
- 96% of all Prime Day shoppers were also Amazon Prime members.
- Amazon products consistently outperform marketplace products on Prime Days: Amazon products accounted for 64% of 2021 Prime Day Sales, while marketplace products (merchandise by third-party sellers) only got 36% of the sales.
- Prime members’ shopping behavior data shows that about 40% of Amazon Prime subscribers browse the platform daily.
- In a study Profitero ran right before Prime Day 2021, 64% of the respondents said they were planning to take advantage of Amazon’s Prime Day offers. Only 8% of these users were high-frequency e-commerce shoppers.
- Nearly half (48%) of American adults estimated that Prime Day sales would nudge them toward an unplanned purchase. The highest rate of unplanned purchases, 56%, was in the age group of 30 to 44.
- Amazon Prime enjoys outstanding member loyalty: 93% of all Amazon Prime subscribers keep their membership after one year.
Amazon Prime Top Competitors
Amazon Prime’s top retail competitors are Target, Walmart, Best Buy, and Costco. Amazon’s streaming service rivals are Netflix, Google, and Apple. However, none of these commerce giants can match the success and reach of Amazon Prime.
- A comparison between Amazon Prime and other mass retailers showcases Prime’s massive advantage: while Costco and Walmart+ have 73 million and 38 million members respectively, Prime has over 200 million.
- Amazon’s competitors try to push back by running attractive deals during Prime Day sales. In 2022, Target offered discounts of up to 60% and extended the deals to three days (compared to Amazon’s 48 hours).
- Amazon Prime has unprecedented customer reach: while the rate of U.S. Prime members reaches 82% in some age groups, Costco’s and Target’s membership programs only reach 26% and 21% respectively.
- 66% of all shoppers choose Amazon as their primary product search platform
How Much Do Amazon Prime Members Spend?
The average Amazon Prime member spends about $1,400 per year on the platform. That’s over twice as much as non-Prime shoppers, who only spend $600 a year on Amazon.
- Membership costs for Amazon Prime are currently $14.99 a month or $139 a year. A Prime Video subscription in the U.S. costs $8.99 a month.
- Prime Video fees differ by country: for instance, a monthly subscription in the U.K. is $10.83, while Prime Video subscribers in Turkey pay less than 50 cents for their monthly memberships.
- A study of Amazon Prime Members’ spending habits shows that the average Prime subscriber spends $83 per month on Amazon. 13% of members spend over $150 on Amazon each month.
- About 2% of Prime members purchase above $1,000 a month on Amazon.
- A 2021 survey showed that 26% of U.S. Prime members spend less than $50 a month on Amazon. 31% of Prime subscribers spend $51 to $100 a month on average.
- Purchase rates spike during Amazon’s Prime Day promotions: in a study from 2020, 20% of respondents estimated their Prime Day spending would reach $300.
- The COVID-19 pandemic gave Prime Days an unprecedented success boost: sales leaped by about 60% from Prime Day 2019 to Prime Day 2020. Prime Day 2021 boasted even higher buy rates.
Amazon Prime Revenue
Although Amazon doesn’t disclose all its insider information about Prime for market competition reasons, Amazon’s revenues from Prime subscription services reached $31.77 billion in 2021—more than double compared to 2018.
- On 2020 Prime Day, the U.S. market revenue accounted for over 62% of all profits, while international markets fell short of 38%.
- 2021 Prime Day revenue crossed the $11 billion mark, with an average spending of $47 per order.
- 2021 Prime day saw 4.64 times more sales compared to 2017 Prime Day.
- Amazon’s subscription service revenues grew by 26% from 2020 to 2021.
- Small business product sales generated $1.9 billion in the two weeks leading up to 2021 Prime Day, an increase of over 100% from 2020.
Amazon Prime Membership Forecast
Despite Amazon Prime’s overwhelming popularity, Prime’s subscription trend shows a slowdown, possibly due to the oversaturation of the U.S. market. Additionally, as COVID-19 restrictions have lifted, more Amazon consumers have reverted to buying in brick-and-mortar stores.
- After two years in which Prime gained 30 million new members, Prime’s new subscriptions plateaued in 2022.
- A staggering 30% of Prime members stated that they have considered canceling their subscription due to price increases.
- 60% of Prime users plan to continue their membership despite the extra cost.
Is Amazon Prime Membership Still Worth It?
Although membership fees have risen, Amazon Prime still pays off for most customers who shop on Amazon regularly. Eligible users can cut costs by applying for student or Medicaid discounts, while others may split costs with family or friends.
Amazon Prime’s perks include:
- A range of everyday beneficial uses, like grocery and prescription drug delivery
- Unlimited music, TV, and movie streaming
- Exclusive Prime Day deals
- Free shipping, including same-day delivery in select areas
Amazon Prime has enjoyed astonishing success. However, with U.S. market saturation and Prime’s rising prices, it’s unclear how many Amazon Prime members will retain their subscriptions in upcoming years.
While currently less than a quarter of Amazon Prime users are based outside the U.S., Amazon will likely continue to promote global Prime memberships to sustain growth.