50% of US households to have Amazon Prime by the end of the year

By Dan Wilson August 8, 2017 - 9:41 pm

According to a forecast from an analyst, 50% of US households will be using Amazon Prime by the end of the year.

US-based Cowen and Co. analyst John Blackledge says that there are 54 million US Prime subscribers as of July 2017. That’s up from the 46 million subscribers they recorded a year ago. The numbers are based on a Cowen monthly survey of 2500 American consumers. In July, 49% of those surveyed said they had a Prime membership. A key driving factor in this increasing membership was the July Prime Day promotion. And with Black Friday and other seasonal events on the horizon, they suggest membership will creep over the 50% mark.

In the the US Amazon Prime costs $99 dollars and comes with a variety of perks and offers. You can check those out here. The opportunities include free two day shipping, access to Prime now, free same day delivery in some US zip codes and also media options like Prime Music and Prime Video. If you’re an avid Amazon user, specifically with a family, then the fee does offer an awful lot of things. Amazon’s Jeff Bezos has said that he wants to enhance the value proposition of Prime so that not having it is the “irresponsible’ choice.

Perhaps of most interest from the Cowen note is the detail that Prime membership remains lowest among households that make less than $25k per year. Whilst that’s hardly surprising, the fee may not be affordable to such demographics, it does mean that the adoption of Prime is stronger amongst higher income groups. And that’s good for retailers and Amazon alike because it means that wealthier consumers are utterly tied into the Amazon Prime offering.

These figures relate to Prime in the US and it’s not clear what the corresponding uptake is in the UK. It’s most likely significantly less.

  • DAZ
    2 years ago

    World domination next, and most people I know now have a PRIME account, and where the States goes the UK normally follows behind, Americanization we cant get enough of it in the UK.
    It shows how far Amazon has come in such a short period of time, they caught eBay up took them over and have lapped them several times.
    While eBay spends its days fixing up old cars and running PR Stunts pulling out another YES man to do the rounds it slowly heads to Oblivion their far more innovative rivals from Seattle will be taking out the supermarket and electrical retail chains in the UK.
    We will all be driving Amazon vans soon looking forward to the day were replaced by drones

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