Kindle device owners spend 55% more every year with Amazon, new study finds

kindlefirehdJeff Bezos says that Amazon wants to make money when Kindle owners use their devices to consume media and make purchases, not when they buy the devices in the first place.

And the strategy appears to be working, at least to some extent, according to new estimate from market research firm Consumer Intelligence Research Partners.

Owners of Kindle e-readers and tablets in the U.S. spend an average of $1,233/year, about 55 percent more than the average of $790/year spent by Amazon customers who don’t own Kindle devices, according to the results of the research firm’s survey. The increased spending results primarily from a higher frequency of purchases.

The survey of Amazon customers in the U.S. found that about 40 percent own a Kindle device, and 9 percent own both a Kindle Fire and a Kindle e-reader.

Amazon.com is notoriously secretive about the number of Kindle tablets and e-readers it sells, but based on the U.S. survey, the research firm estimates that Amazon’s installed base is currently 20.5 million e-readers and tablets.

  • NewAgeMeMe

    or customers who spend more on Amazon tend to buy kindles. Is the price of the kindle purchase part of that total amount spent? Also, I have a hard time believing that the average Amazon user spends $790–maybe the average active user.

  • guest

    More meaningless stats from AMZN.

    • guest

      Not from Amazon. From a third party that decided to do the research.

  • VAharleywitch

    I buy little on Amazon aside from e-Books. And usually only if I can’t find it on another e-seller site, or I’ve purchased earlier e-books in a series via a great price/deal on Amazon.

    While I just upgraded my son’s broken 1st gen Kindle Fire to a KFHD, that’s laregly because he has several games he *really* likes that aren’t available TMK in the general Google Market, or he’s gotten too far to start over.

    For myself, I’ve been quite happy w/ my Nexus 7 (1st gen 16GB) with the apps to read from all the major e-Book sellers as well as the 2ndary/smaller publishers.

    And I don’t have to worry about any company tracking my purchases & activity done on my tablet that aren’t on their site (well, anymore than I have to on my PC).

  • http://StartedinSeattle.com/ Stephen Medawar

    Do you know if it was clear whether this was causation or correlation?

    • Brodie Yastrum

      My first thought exactly.

    • NewAgeMeMe

      Well, if the cost of the kindle is part of that increased spending, than at least a portion of it is causation.

  • Nate

    You might want to revise this story. CIRP’s figures don’t add up:

    http://www.the-digital-reader.com/2013/12/15/wouldnt-put-much-faith-survey-kindle-owners-spending-amazon/