retail news in context, analysis with attitude

Business Insider reports on a new report from Consumer Intelligence Research Partners about spending on Amazon. “While Prime members buy an average of $1,400 a year worth of stuff on Amazon,”the story says, “regular customers only spend $600, the study found … that's a wider gulf than was reported by CIRP last year, when Prime customers spent an average of $1,300 and other customers spent $700.”

That means that “Prime members are spending $100 more than a year ago on average, while others are spending $100 less on average.”

There also is the suspicion that Prime membership growth actually has slowed: “At the same time, however, Prime's membership growth appears to be slowing in US, according to CIRP. The firm estimates that there are a total of 97 million Prime subscribers in the United States. Over the past 12 months, that number only grew 8%, which is the slowest rate recorded since CIRP started tracking Amazon Prime subscriptions in 2012.”
KC's View:
I wouldn’t be particularly surprised if Prime growth is slowing, if only because there have to be ebbs and flows … but it also explains one of the reasons why Amazon keeps adding value to Prime, especially through Whole Foods discounts and benefits.