Amazon.com Inc. (NASDAQ: AMZN) has been witnessing exponential growth when it comes to its Prime segment, according to recent updates that are based on the research by the Consumer Intelligence Research Partners. Based on the research report, Prime subscribers in the United States currently stand at approximately 54 million. This figure represents a 35 percent year-over-year increase in comparison to the previous year. The data that were used in the research take into consideration the subscriptions until the end of the prior year.
According to the Consumer Intelligence Research Partners, members of the Prime account for 47 percent of the total customers of the US ecommerce giant. The fact that nearly half of the customers of Amazon are paying to utilize the service just goes to show that it is indeed very popular. However, it is important to note that the online retailer did not disclose any exact figures. Therefore, the data used in the study of the CIRP are just estimates.
Members of Amazon Prime are required to pay $99 every year, in order to enjoy a wide range of services and products. One of the benefits of the Prime service includes the two-day or one-day delivery of millions of Amazon products for free. Furthermore, subscribing to Prime allows customers to utilize a variety of services, including Prime Now and Prime Video, as well as take advantage of promos that are exclusive to members. Overall, many analysts consider this annual subscription fee to be fair and reasonable, since it provides members with access to numerous services that would be collectively more expensive if they are not subscribed to the Prime Service.
According to the CIRP, the members of Prime spend approximately $1,100 per year to utilize these services. On the other hand, non-members only spend about $600 per annum for the products found on the website of Amazon. Based on a report in July, the Consumer Intelligence Research Partners had stated that members of Prime tend to have a higher level of loyalty, and that the US retail powerhouse has a retention rate of 95 percent for members every year. Furthermore, the after-sales service and customer service of the corporation can be regarded as one of the best internationally. Hence, it is rather unsurprising that it has a healthy level of annual membership renewals for customers of Prime.
The CEO of Amazon, Mr. Jeff Bezos stated that in the month of December, the retail firm was able to add 3 million members. Several analysts are under the belief that most of these can be attributed to free registrations, which also gives customers free access to the Prime service for a month. If they wish to continue using the service after the free 30-day trial, they will have to pay $99 per year.
In other news, Amazon was able to scoop up the ex-host of Top Gear Mr. Jeremy Clarkson, who will launch his own show on Prime Video. Aside from that, the Prime Air drone delivery service is ready to push the company higher. This service will enable customers to order items and receive them within 20 minutes.
Amazon.com Inc. is anticipated to report its earnings results for the fourth quarter of fiscal year 2015 on Jan 28.