You Won’t Believe How Much Amazon is Raking in on Prime

The online retail giant is extending its tentacles into many products and services — and reaping the rewards. Here’s the scoop.

More than 41 million Americans are now members of Amazon Prime, the e-commerce giant’s two-day shipping and loyalty program. Those customers are spending big bucks — an average of about $1,100 per person annually — shopping on Amazon. (Do the math. That’s a lot of money.)

That’s according to a recent analysis, from Consumer Intelligence Research Partners, which found that non-Prime Amazon customers spend about $700 per year.

Amazon Prime membership soared by 50 percent last year, despite the retailer bumping its Prime membership from $79 up to $99. CIRP estimates that 42 percent of Amazon customers in the United States are Prime members.

CIRP also revealed the following data, showing that only a small portion of Amazon customers shop on Amazon devices:

  • About one-third own a Kindle tablet.
  • Just 5 percent of U.S. customers own a Kindle Fire TV box or stick.
  • Less than 1 percent of Amazon’s U.S. customers have a Fire smartphone or an Echo.

In addition to free, two-day shipping, an Amazon Prime membership includes Prime Instant Video, Prime Music, Prime Photos and access to the Kindles Owners’ Lending Library.

Amazon recently announced free shipping on all small and light items, even for non-Prime members. It is also looking to grow its near-instant delivery service.

But the e-commerce giant isn’t stopping there. Amazon has plans to expand its private-label Elements brand to include a variety of grocery items and household cleaners.

The e-tailer is also looking to launch a new marketplace called Handmade, which as the name implies, specializes in handcrafted goods.

I love Amazon Prime. At $99 a year, it’s a steal of a deal for my family. I love the quick shipping, Kindle lending library and Prime Instant Video.

Are you an Amazon Prime member? Share your comments below.

Stacy Johnson

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