Amazon Prime is a subscription-based service offered by Amazon to its customers. It provides benefits such as free and fast shipping, access to streaming services, and exclusive discounts on products. Since its launch in 2005, Amazon Prime has grown to become one of the most popular subscription services worldwide.
According to recent statistics, Amazon Prime has over 200 million subscribers globally, with 147 million based in the United States alone. The number of US households with an Amazon Prime subscription is expected to reach 187.2 million by 2023. Amazon Prime Day, an annual shopping event exclusive to Prime members, has also become a significant revenue generator for the company. In 2022, Amazon Prime Day sales reached $11.19 billion, up from $10.4 billion in 2021.
Key Amazon Prime Statistics
Amazon Prime is a popular subscription service that offers a variety of benefits to its members, including free two-day shipping, access to streaming services, and more. Here are some key statistics related to Amazon Prime.
- There are more than 200 million Amazon Prime users around the world as of 2022 [1].
- There are more than 172 million Amazon Prime users in the USA alone [2] [3].
- Amazon spent more than $20 billion in advertising and promotions for the year 2022 [4].
- Amazon Prime Day revenue hit $12.09 billion in 2022, showing an 8% increase from the previous year [8] [9].
- In July 2022, Amazon Prime Day lasted for 48 hours and will stay in that duration for the foreseeable future [10].
- As of 2022, there are more than 160 million users in the United States alone and the numbers will increase to 176 million by the end of 2025 [17].
- 65% of Amazon shoppers are also Amazon Prime subscribers [18].
- People born between 1980 and 1989 make up most of the Amazon Prime user demographics [19].
- 81% of Americans between the ages of 18 and 34 are Amazon Prime members [20].
Amazon Prime Revenue
- There are currently more than 200 million Amazon Prime users around the world as of 2022. Back in 2019, there were only about 150 million users reported. However, growth outside the USA has been reportedly slow [1].
- In the USA alone, there are more than 172 million members as of 2021 [2],[3].
- Amazon spent more than $20 billion in advertising and promotional costs in 2022 alone, which was a drastic increase from the $16.9 billion spent the previous year [4].
- Amazon Prime video revenue totaled to $5.16 billion as of 2022, almost half a billion up from the previous year annual net sales of $4.63 billion [4].
- It’s reported that more than 1/3 of Amazon Prime subscribers spend an average of $50 to $100 a month on the platform [5].
- Amazon Prime comprises 19% of the market share of SVOD services in 2022, which was a 3% increase from 2020. Netflix holds the highest market share among the US streaming services with 21% [6].
- Amazon’s net revenue from their subscription services totaled to $35.22 billion in 2020. Amazon Prime reported that there were 200 million paying members by the end of the year [14].
From the numbers alone, it’s clear that Amazon Prime membership generates a lot of revenue for Amazon. Amazon Prime subscriptions are recurring and it’s clear how big of an impact they have on overall Amazon Prime growth [7].
In the next section, we’ll go over the most sought-after holiday of all time: Amazon Prime Day.
Amazon Prime Day Sales and Statistics
- In 2022, Amazon Prime Day revenue was reported to hit $12.09 billion, which is an 8% increase from the previous year [8].
- That same year, Amazon Prime Day sales increased by 8.1% from the previous year. That year, they generated close to $12 billion in revenue for the entirety of the shopping event [9].
- In July 2022, Amazon Prime Day was announced that it will lasted for 48 hours and will remain that duration for the foreseeable future [10] .
- Consumer Electronics saw a drastic decrease in sales during last year’s Amazon Prime Day, even though it was one of the top-performing categories in the USA [11]. The other top four categories saw an increase in sales growth, with Beauty and Health showing the highest increase in sales at 26% [11].
- In Canada, sales from sponsored ads increased by 281% during Amazon Prime Day in 2022. The USA reported a 236% increase in sales from sponsored ads for the same year [12],[13].
- During the 4th quarter of 2022, Amazon saw an increase in their global net revenue across online stores compared to the previous quarter. This means that their net revenue for that quarter was $36.3 billion [15].
- 83% of Amazon marketplace offered Prime shipping service as of 2021. In [16].
Amazon Prime Day is an annual shopping event exclusively for Amazon Prime members. During this event, Amazon offers exclusive deals and discounts on a wide range of products across various categories, including electronics, fashion, home, and more. The event typically lasts for two days and is usually held in July, although the exact date may vary from year to year.
Amazon Prime Day is a big deal because it offers Prime members the opportunity to purchase products at significantly discounted prices. It’s also a chance for Amazon to boost its sales and attract new customers to its Prime membership program. In addition, the event creates a sense of excitement and urgency among shoppers, who are often eager to take advantage of the limited-time deals before they expire.
Amazon Prime Demographics
- It’s predicted that the number of Amazon Prime users in the United States will dramatically increase over the next few years. It’s projected that Amazon Prime will have more than 176 million users, an increase from 2022’s 163.5 million users recorded [17].
- In 2021, 65% of Amazon online shoppers were also members of Amazon Prime. This number has been consistent since 2019 [18].
- People born between 1980 and 1989 used the Amazon Prime services in the United States more than any other age demographic. 80% of the survey participants belonged to this age group and were Amazon Prime subscribers [19]
- 81% of Americans between the ages of 18 and 34 are Amazon Prime members while the average Amazon customer is typically a woman over the age of 40 [20].
- According to a 2019 survey, the average Amazon shopper has an annual household income of $84,449, a tad higher from Walmart shoppers ($76,313) [21].
- 40% of Amazon Prime members visit and use the platform daily [22].
- 40% of Amazon Prime shoppers are comfortable with using the platform and have no problem purchasing or shopping through the site. 10% of these service members make at least one purchase daily [23].
- Amazon Prime retains 93% of their members who sign up after one year. As of 2021, their retention rate for 30 days was 69%, which was a 93% increase a year after the platform was launched in 2015 [24].
The Wide Reach of Amazon Prime
Amazon Prime has a global reach, with the service available in over 20 countries. As of 2021, Amazon has over 200 million Prime subscribers worldwide, with 147 million based in the United States. The service has also seen growth in other countries, such as India, where it has over 25 million subscribers.
Amazon Prime’s global reach has also been expanded through partnerships with other companies. For example, in the United Kingdom, Prime members can receive free delivery from select restaurants through a partnership with Deliveroo. In Japan, Prime members can receive discounts on products at select convenience stores.
Overall, Amazon Prime has become a popular choice for customers looking for a variety of benefits, from free shipping to access to exclusive deals and streaming content. Its global reach and partnerships with other companies have helped to expand its reach and appeal to customers around the world.
Reference
[1] https://www.aboutamazon.com/news/company-news/2021-letter-to-shareholders
[2] https://files.constantcontact.com/150f9af2201/2b8bc940-e1e4-4152-a221-096965c87646.pdf
[3] https://www.statista.com/statistics/1223385/amazon-prime-subscribers-in-the-united-states/
[4] https://www.statista.com/statistics/678153/amazon-ad-cost/
[5] https://www.statista.com/statistics/1274279/monthly-spending-on-prime-amazon-users-united-states/
[6] https://www.statista.com/statistics/1052770/global-svod-subscriber-count-by-platform/
[7] https://www.mediaplaynews.com/justwatch-netflix-third-quarter-market-share-remains-tops-among-u-s-streamers-despite-sub-losses/
[8] https://www.statista.com/statistics/728120/annual-amazon-prime-day-sales/
[9] https://www.statista.com/statistics/726674/yoy-amazon-prime-day-growth/
[10] https://www.statista.com/statistics/1014999/annual-amazon-prime-day-duration/
[11] https://www.statista.com/statistics/1338769/amazon-prime-day-sales-growth-by-category-united-states/
[12] https://www.statista.com/statistics/1378477/amazon-prime-day-sponsored-ads-sales-growth-canada
[13] https://www.statista.com/statistics/1378462/amazon-prime-day-sponsored-ads-sales-growth-united-states/
[14] https://www.statista.com/statistics/672747/amazons-consolidated-net-revenue-by-segment/
[15] https://www.statista.com/statistics/999686/amazons-net-revenue-by-product-group-quarter/
[16] https://www.statista.com/statistics/1242240/amazon-marketplace-share-of-sellers-offering-prime-shipping/
[17] https://www.statista.com/statistics/504687/number-of-amazon-prime-subscription-households-usa/
[18] https://www.statista.com/statistics/234253/share-of-amazon-prime-subscribers-in-the-united-states/
[19] https://www.statista.com/statistics/304940/amazon-prime-us-age-distribution/
[20] https://www.statista.com/statistics/304940/amazon-prime-us-age-distribution/#:~:text=As%20of%20January%202020%2C%2081,increased%20across%20all%20age%20groups.
[21] https://www.businessinsider.com/amazon-shoppers-richer-than-walmart-2020-1
[22] https://feedvisor.com/resources/amazon-marketing-advertising-strategies/2021-amazon-consumer-behavior-report/
[23] https://www.statista.com/statistics/1251860/amazon-prime-retention-rates/
[24] https://www.statista.com/statistics/1274977/prime-vs-non-prime-perception-on-amazon/
