Shoppers exhibiting Amazon Prime fatigue
The main source of growth behind the retail success of Amazon Prime may be sputtering, according to Consumer Intelligence Research Partners (CIRP).
According to CIRP's latest estimates of Prime membership in the United States, growth has stalled. After 12% year-over-year growth in July, CIRP estimates just 8% annual growth as of October.
That’s the lowest annual rate since CIRP began tracking the data in 2012. While Amazon famously keeps its number of Prime members under wraps, CIRP’s findings cite 97 million such shoppers who spend an average of roughly $1,400 per year, compared to $600 per year for non-members.
“Prime membership growth has clearly flattened,” said Josh Lowitz, partner and co-founder at CIRP. “Amazon Prime membership has now spread far beyond the early adopters who were presumably the most committed Amazon shoppers.”
About 60% of Amazon customers subscribe to Prime, but getting that last 40% will be a lot harder than the first 60%.
Read more about the CIRP report here.