retail news in context, analysis with attitude

Internet Retailer reports that a new estimate from Consumer Intelligence Research Partners (CIRP), which keeps track of such things, says that Amazon now has 54 million members of its US Prime program, up 35 percent over 2014.

That number accounts for some 47 percent of all Amazon US shoppers.

However, the report isn't all good news for Amazon: "As the number of Prime members increased, the average spending per Prime member fell. In Q4 2014, CIRP estimated Prime members spent an average of $1,500 yearly on Amazon. In Q4 2015, that dropped 27% to $1,100."
KC's View:
Average spending may be down, but I'm not sure this is necessarily a bad thing. As Prime membership expands, it is inevitable that new members are going to be less avid users than some of us early adopters. I also think that there are a lot of other Prime benefits, like streaming media, that may be as important to new members as shipping benefits.