(Bloomberg) — Amazon.com Inc.’s Prime subscription service. reached a new high of 180 million US shoppers in March, an 8% increase from a year earlier, according to Consumer Intelligence Research Partners, which has tracked Amazon memberships since then. 2014
The increase shows that Amazon’s promise of quick delivery of a wide variety of goods continues to have strong appeal with shoppers struggling with inflation despite greater online competition from Walmart Inc. and companies linked to China such as TikTok Shop, Shein and Temu.
US consumers pay Amazon $140 a year or $15 a month for a Prime subscription, which includes shipping discounts and the ad-supported Prime Video streaming service.
Prime membership growth has flattened since the pandemic, and Consumer Intelligence Research Partners last year predicted the online retailer had hit a plateau. The most recent data showing that 75% of US shoppers have Prime memberships is a clear indication that Amazon is still gaining new subscribers.
The increase suggests that U.S. consumers believe “that their Amazon shopping habits justify the investment in a Prime membership,” the Chicago research firm said in its report on Tuesday.
The company measures the number of people who have access to Prime, which is greater than the actual number of subscriptions sold by Amazon. A Prime subscription is generally shared by members of a household, all of whom are counted by Consumer Intelligence Research Partners.
Amazon in 2021 announced that it had 200 million Prime members worldwide, the last time it published a figure on the number of subscriptions. The Seattle-based company discloses revenue from subscription services every quarter, which is mostly from Prime. Analysts project that Amazon will report a 12% gain to $10.8 billion in subscription service revenue in the period ended March 31, according to data compiled by Bloomberg.
Amazon declined to immediately comment on the report.
More stories like this are available at bloomberg.com
©2024 Bloomberg LP
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Published: 16 Apr 2024, 23:57 IST