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When Amazon Prime launched in 2005, it was a guaranteed success. In only a matter of years, it was one of the most reliable and hassle-free online services for everything.
The service offers free shipping, express deliveries, streaming service, free Kindle books, and access to exclusive shopping events like Prime Day.
Let’s check out what the numbers have to say about Amazon Prime’s success.
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Online shopping is here to stay, or at least for the 197 million people who visit Amazon monthly. While many competitors have tried to take a bit out of Amazon’s market share, it remains the leader in e-commerce.
Building on Amazon’s growing clientele, Amazon’s Prime service is growing by the minute. Let’s dive into the latest figures in Amazon Prime’s resounding success.
(Amazon)
As of 2022, Amazon reported over 200 million Amazon Prime customers around the world. This is a significant increase from 2019, when paying members were around 150 million.
However, Amazon Prime's growth outside the US has been slow despite its availability in many countries. Comparing the service’s global reach to its US customer base, the difference is under 50 million.
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(Statista, Consumer Intelligence Research Partners)
As of the second quarter of 2021, Amazon Prime had approximately 153 million customers in the US. This compares to 124 million paying members a year ago.
Back in 2014, American Prime users were just around 40 million. This 330% increase illustrates the service’s impressive growth over the years.
(Statista)
76.6 million, equivalent to 59% of American households, have at least one Prime membership in 2022. The number represents a significant increase from 2019’s 66.4 million.
Amazon offers Prime users a free household feature to share the service’s benefits with their family members. Currently, Amazon allows up to two profiles for adults, four for children, and four for teenagers.
✅ Pro Tip: Being a student comes with a lot of perks, especially for online services. If you’re a college student who needs stuff directly shipped to their dorms, Amazon Prime offers a 6-month free trial for anyone who has a student email. |
(Wikipedia)
After establishing its monopoly in e-commerce, Amazon has aggressively pushed its expansion to other countries. This push comes after Amazon Prime's saturation in the US, meaning it’s grown so much that it is beginning to plateau.
See below how many countries have Amazon Prime:
However, their expansion didn’t come easy. Since Amazon sells many of the products on its site at razor-thin margins, its ability to profit is a major concern. Its investment in other countries is also subject to logistical and cultural hurdles, especially in Singapore and India.
In many ways, Amazon struggles to duplicate its resounding success in North America. In June 2023, AliExpress reported more than 800 million visits, which is expected to grow at +8.08% monthly. With China’s Alibaba monopoly on the Chinese market and leverage in their Asian market expansion, Amazon faces major hurdles in Asian countries.
✅ Pro Tip: You can run it during Christmas and have your presents delivered fast. Just know that over 90% of those exploring Prime's many benefits stay with the service after the first year. |
Amazon has built a unique business model through its Prime service. It charges users subscription fees, and, in return, they spend even more money. Of course, the membership also provides many benefits that manage to retain users.
The following Amazon Prime stats reveal how this strategy brings in significant profits for Amazon.
(Amazon)
In 2021, Amazon’s revenue was $469.8 billion, up 22% from 2020. Amazon generated $386.1 billion in net sales in 2020, up 38% from $280.5 billion in 2019.
Amazon's revenue growth is over 20% every year. Its revenue includes sales from Prime content on top of physical stores, AWS services, and other services.
The table below represents Amazon's growth from 2014 to 2022:
Year |
Amazon Revenue, in US billions |
Amazon Revenue Growth, % |
2014 |
89.0 |
19% |
2015 |
107.0 |
20% |
2016 |
136.0 |
27% |
2017 |
177.9 |
31% |
2018 |
232.9 |
31% |
2019 |
280.5 |
20% |
2020 |
386.1 |
38% |
2021 |
469.8 |
22% |
(Statista)
Amazon is a profitable company. In 2020, Amazon's net income was $21.33 billion, up 84% from a net income of $11.59 billion in 2019. In 2015, Amazon's profit was just $596 million.
Online and physical retail remains Amazon’s biggest money-maker, but its subscription and web services also bring in significant cash flow.
(Source: Statista)
Amazon subscription services generated revenue of $25.21 billion in 2020. This segment includes annual and monthly fees associated with Amazon Prime memberships, audiobooks, videos, music, e-books, and other non-AWS subscription services.
(Amazon)
These figures exceed its total revenue in 2020. Amazon Prime's revenue is growing along with the number of its members.
Check out the table below to see Amazon Prime's growth from 2014 to 2022.
Year |
Amazon Subscription Services Revenue, in billion U.S. dollars |
2014 |
2.76 |
2015 |
4.47 |
2016 |
6.39 |
2017 |
9.72 |
2018 |
14.17 |
2019 |
19.21 |
2020 |
25.21 |
2021 |
31.77 |
2022 (Q1-Q3) |
26.03 |
(Statista)
Prime users are money-savvy. Many choose to subscribe to save money in the long term, such as by receiving items faster or being able to compare items and save money on delivery. Yet, they are regular spenders.
According to a 2021 survey, 31% of Prime members spent between $50 and $100 monthly on the platform.
Another 26% reported spending up to $50, and 23% made purchases for $100–$200. Around 13% of users were in the $200–$500 spending range, while those spending $500 to $1,000 and $1,000+ accounted for 4% and 2%, respectively.
People often choose Amazon over other alternatives due to its competitive pricing, fast and reliable shipping, and great customer service.
What started as a 2015 shopping extravaganza is now one of Amazon’s biggest selling points. Amazon Prime Day is Amazon’s exclusive shopping event for its Prime members, filled with sky-high sales and brand offers.
The following figures show us a more in-depth look at Amazon’s biggest moneymaking event of the year.
(Statista)
In 2021, Amazon Prime Day sales reached over $11.19 billion, representing a 7.7% year-on-year increase in sales.
Every year, Amazon organizes a sales event for members. Prime Day lasts two days and supports Amazon Prime's growth.
Check out below how much revenue was generated by Amazon Prime Day from 2015 to 2022:
Year |
Amazon Prime Day Sales, in $US billions |
2015 |
0.90 |
2016 |
1.45 |
2017 |
2.33 |
2018 |
4.15 |
2019 |
7.16 |
2020 |
10.39 |
2021 |
11.19 |
2022 |
12.09 |
Since its debut as Amazon’s 20th-anniversary celebration, Prime Day is now an event that competes against Black Friday and Cyber Monday.
Easier access to the Internet allowed people to move beyond traditional cable TV in favor of streaming TV. Streaming allows internet users to watch TV shows and movies at their own pace, time, and even language.
While competitors like Netflix are still leading the streaming race with 231 million subs in 2023, Amazon Prime Video isn’t lagging far behind either.
Check out the stats below to learn how Amazon Prime is catching up.
(Statista)
Amazon Prime Video is the second-largest video streaming provider in subscription numbers, second only to Netflix.
Prime Video offers a lot of original content, licensed programming, and better 4K and HDR support. It also allows users to rent or buy additional content unavailable on their catalog due to licensing reasons.
While this may sound counterintuitive to many, you can watch recent theater releases before they’re released on streaming platforms.
But perhaps Amazon Prime’s biggest advantage is how it’s bundled with Amazon Prime benefits like free deliveries, music streaming, and more.
(Statista)
Amazon Prime has been investing in content creation and production with unique series unavailable on other platforms.
With Amazon’s push beyond North America, more people are expected to sign up and reap the all-in-one benefits of Amazon Prime.
(Statista, Mediaplaynews)
Netflix continues to be the leader in subscription video on demand or SVOD, with a 21% market share.
Check out the table below to see Amazon Prime's contributions to SVOD services:
Service |
Market Share |
Netflix |
21% |
Amazon Prime Video |
19% |
Disney+ |
15% |
HBO Max |
15% |
Hulu |
10% |
Apple TV+ |
7% |
Paramount+ |
4% |
Other |
9% |
With many customers unhappy with Netflix’s password-sharing policies in 2023, Amazon Prime Video may be able to attract some of Netflix’s user base in the coming months.
(Enterprise Apps Today)
According to estimates, Amazon Prime Video generated $4.1 billion in sales in 2020.
The platform’s long-term goal is to be in a position to compete against mainstream channels and attract new video-only members to join.
See the table below with Amazon Prime Video revenue from 2019 to 2022:
Year |
Amazon Prime Video Revenue, in $US billions |
2019 |
3.57 |
2020 |
4.1 |
2021 |
4.63 |
2022 |
5.16 |
✅ Pro Tip: Shows and movies available in one country in any SVOP service tend to vary. For example, New Zealand has more than 10,000 titles in its catalogue, while Latvia only has a little above 600. This difference is due to licensing and copyright availability in countries. If you want to watch a show only available in certain countries, you should learn about geo-blocking and ways to bypass it. |
Amazon Prime stats regarding demographics paint a rather unsurprising customer audience. The typical buyer is young and affluent.
With more people living a fast-paced life, Amazon’s same-day delivery alone is a life-saver for many. Let’s examine how Amazon is faring in terms of demographics through the stats below.
(Statista)
According to Amazon Prime demographics, the average Amazon customer is a 46-year-old white woman.
Yet over 8 in 10 Americans using Prime are aged 18 to 34. Younger generations are more comfortable using technology.
Yet, it’s fair to say that the pandemic has encouraged many older generations to open an Amazon account too.
(Insider)
This finding refers to the average Amazon shopper. Yet it can also give us information about the Prime member profile since some 68% of Amazon shoppers had a Prime account as of 2020.
According to a 2019 survey, the average Amazon shopper had an annual household income of $84,449. To put this into perspective, Walmart shoppers had an annual income of $76,313.
(Feedvisor)
Amazon Prime shoppers are digitally savvy. They are comfortable buying from online platforms, as around 40% of Prime users visit the platform daily. What’s more, 10% of the service members make a purchase every day.
(Statista)
Amazon Prime members are loyal. As of 2021, the 30-day retention rate for Prime was 69%, rising to 93% in the first year and a near-automatic 98% after the first year.
Amazon Prime is one of the most popular e-commerce services worldwide. And the start of Prime Video has helped drive memberships dramatically.
It’s fair to say that despite its young audience group, Amazon Prime targets preferably established professionals with a secured income and household routine.
These Amazon Prime statistics demonstrate the importance of reliable service for growth. Amazon has built its market presence through digital innovation and excellent customer service, ensuring users can always rely on the platform.
While free trials are available for up to 6 months, Amazon Prime costs $14.99 a month or $139 a year. Amazon also offers discounted membership for eligible users.
Amazon Prime is available in the US and 26 other countries.
US subscription prices are typically higher in the US due to higher wages and higher logistical costs involved in getting products to your doorstep.
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