Amazon Prime numbers WAG'ed

fjtorres · 01-27-2015, 11:41 AM

http://www.cnet.com/news/amazon-prim...n-non-members/

Quote:

At the end of 2014, Amazon Prime had 40 million US members, up from an estimated 29 million at the end of the third quarter, new data from Consumer Intelligence Research Partners shows. CIRP estimates that the average Amazon Prime customer spends $1,500 per year on the e-commerce site, compared to $625 for nonmembers.

$60B a year in sales.
That's a lot of Kindles and ebooks...
...and diapers and TVs and everything in between.
They can easily afford the free ebooks they give out every month.

Of course, it's just a WAG since Amazon brags aren't that specific.

Quote:

CIRP's data is based on surveys of 500 US "subjects" who made a purchase on Amazon in the fourth quarter. The 40 million member number comes from CIRP's estimate that in the US, 45 percent of Amazon customers are Prime members.

More at the source.

Barty · 01-27-2015, 08:13 PM

Once people pay for prime they feel they need to buy stuff to make prime pays for itself. It's pretty ingenious

fjtorres · 01-27-2015, 09:04 PM

Quote:

Originally Posted by Barty

Once people pay for prime they feel they need to buy stuff to make prime pays for itself. It's pretty ingenious

It works for Sam's Club and Costco.

GA Russell · 01-28-2015, 01:01 AM

I think that the estimate that 45% of Amazon's customers are Prime members is very high. It suggests to me that folks who are not Prime members are doing their shopping elsewhere.

fjtorres · 01-28-2015, 08:05 AM

Quote:

Originally Posted by GA Russell

I think that the estimate that 45% of Amazon's customers are Prime members is very high. It suggests to me that folks who are not Prime members are doing their shopping elsewhere.

Their definition of "Amazon customer" might be limited to fairly frequent buyers and not the once or twice a year shopper.

But it *is* a very high number, especially given that there are "only" about 121M households in the US, so they are claiming a third of households are Prime subscribers. And that over half the households with internet access in the US (81M) are Prime subscribers. So that 45% percent actually implies that pretty much everybody who can shop online shops at Amazon, Prime or no Prime.

Add in that Prime subscriptions can be shared by close family members (parents, children siblings) and, again depending on their definitions, those Prime accounts could be used by even more households. Which would make the ratio of purchases less impressive.

Without knowing their definitions those numbers are just wild ass guesses, as hard to pin down as a spooked donkey.

harriska2 · 01-28-2015, 05:12 PM

Quote:

Originally Posted by fjtorres

But it *is* a very high number, especially given that there are "only" about 121M households in the US, so they are claiming a third of households are Prime subscribers. And that over half the households with internet access in the US (81M) are Prime subscribers. So that 45% percent actually implies that pretty much everybody who can shop online shops at Amazon, Prime or no Prime.

I would think they offer prime to Canada, UK, etc - and if so, that is how the number is so high.

fjtorres · 01-28-2015, 06:32 PM

Quote:

Originally Posted by harriska2

I would think they offer prime to Canada, UK, etc - and if so, that is how the number is so high.

The report is only about the US, not global numbers.

Quote:

Subscribers to Amazon's service in the US lay out $1,500 a year on average, more than twice the $625 spent by non-Prime shoppers, new research shows.

Quote:

At the end of 2014, Amazon Prime had 40 million US members

Little.Egret · 01-28-2015, 06:48 PM

Quote:

Originally Posted by fjtorres

The report is only about the US, not global numbers.

Those "quotes" miss out the word estimate.

The 40 million member number comes from CIRP's estimate that in the US, 45 percent of Amazon customers are Prime members.

CIRP estimates that the average Amazon Prime customer spends $1,500 per year on the e-commerce site, compared to $625 for non-members.

fjtorres · 01-28-2015, 07:14 PM

Quote:

Originally Posted by Little.Egret

Those "quotes" miss out the word estimate.

The 40 million member number comes from CIRP's estimate that in the US, 45 percent of Amazon customers are Prime members.

CIRP estimates that the average Amazon Prime customer spends $1,500 per year on the e-commerce site, compared to $625 for non-members.

All of which is excerpted in the OP to start with...

...in case the WAG term in the headline didn't express the skepticism strongly enough.

Catlady · 01-28-2015, 09:57 PM

Quote:

Originally Posted by Barty

Once people pay for prime they feel they need to buy stuff to make prime pays for itself. It's pretty ingenious

Not necessarily; it could work the other way around: shopping a lot at Amazon makes Prime cost-effective.

ProfCrash · 01-29-2015, 08:40 AM

That reminds me, I need to get stamp pads that will not dye my toddlers arms blue. Off to Amazon...

Sregener · 01-30-2015, 07:54 AM

Prime saves me money.

The music service is nice, if a little lacking in content. The streaming service is competitive with Netflix, for less money. And the shipping options make it worth it - if I need something, I can spend a day hunting for it in a local store (and pay for the gas, time, and higher price of the item) or have it show up on my doorstep. If I need it fast, 2-day, if not, a $1 credit to use later.

Yes, my first shopping step is often Amazon, but why not?

frahse · 02-01-2015, 06:09 PM

Quote:

Originally Posted by GA Russell

I think that the estimate that 45% of Amazon's customers are Prime members is very high. It suggests to me that folks who are not Prime members are doing their shopping elsewhere.

Agreed.

frahse · 02-01-2015, 06:11 PM

Quote:

Originally Posted by Sregener

Prime saves me money.

The music service is nice, if a little lacking in content. The streaming service is competitive with Netflix, for less money. And the shipping options make it worth it - if I need something, I can spend a day hunting for it in a local store (and pay for the gas, time, and higher price of the item) or have it show up on my doorstep. If I need it fast, 2-day, if not, a $1 credit to use later.

Yes, my first shopping step is often Amazon, but why not?

I am a Proud Prime!

HoopyFrood · 02-01-2015, 08:51 PM

I buy a lot of stuff from Amazon, but also a lot of stuff elsewhere since Amazon is frequently not the lowest price out there. And I hate to pay for shipping so Amazon Prime doesn't really interest me since most of the stuff I buy there includes free shipping. If I have to pay for shipping I'll generally go where the item I want is cheapest.

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01-27-2015, 08:13 PM	#2
Barty doofus Posts: 2,543 Karma: 13089041 Join Date: Sep 2010 Device: Kobo Libra 2, Kindle Voyage	Once people pay for prime they feel they need to buy stuff to make prime pays for itself. It's pretty ingenious

01-28-2015, 01:01 AM	#4
GA Russell Argos win Grey Cup! Posts: 7,678 Karma: 31487351 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	I think that the estimate that 45% of Amazon's customers are Prime members is very high. It suggests to me that folks who are not Prime members are doing their shopping elsewhere.

01-29-2015, 08:40 AM	#11
ProfCrash Tea Enthusiast Posts: 8,554 Karma: 75384937 Join Date: Jul 2010 Location: Somewhere in the USA Device: Kindle1, Kindle DX Graphite, K3 3G, IPad 3, PW2	That reminds me, I need to get stamp pads that will not dye my toddlers arms blue. Off to Amazon...

01-30-2015, 07:54 AM	#12
Sregener Addict Posts: 239 Karma: 1664052 Join Date: Mar 2011 Device: Kindle 4NT	Prime saves me money. The music service is nice, if a little lacking in content. The streaming service is competitive with Netflix, for less money. And the shipping options make it worth it - if I need something, I can spend a day hunting for it in a local store (and pay for the gas, time, and higher price of the item) or have it show up on my doorstep. If I need it fast, 2-day, if not, a $1 credit to use later. Yes, my first shopping step is often Amazon, but why not?

02-01-2015, 08:51 PM	#15
HoopyFrood Zealot Posts: 118 Karma: 1005064 Join Date: Dec 2010 Location: Missouri Device: Cruz e-reader, 2 Kindles and a Kindle DX, Sanza Clip	I buy a lot of stuff from Amazon, but also a lot of stuff elsewhere since Amazon is frequently not the lowest price out there. And I hate to pay for shipping so Amazon Prime doesn't really interest me since most of the stuff I buy there includes free shipping. If I have to pay for shipping I'll generally go where the item I want is cheapest.

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