Updated at 8:50 a.m. with Amazon response.
The number of Amazon customers who use Amazon Prime in the United States has leveled off in the past year at just under 170 million people, according to a new estimate from Consumer Intelligence Research Partners (CIRP).
Amazon issued a statement disputing the report.
“Just because an analyst firm reports something doesn’t make it true or fact, and in this case, the research is not accurate,” said Maggie Sivon, an Amazon spokesperson, in a statement. “Prime membership continues to grow year-over-year—in the U.S. and worldwide—as the value members receive continues to increase.”
The company did not provide specific numbers supporting its assertion. CIRP said in response that it stands by its data, which suggests that new additions are being roughly offset by attrition.
The issue of Prime growth has broader implications for Amazon’s business, given the frequently cited tendency of Prime members to spend more on Amazon than non-members do. The CIRP report comes about a year after Amazon increased the annual price of Prime membership to $139, from its previous rate of $119.
But CIRP, which has tracked and analyzed Amazon Prime U.S. membership for the past decade, cites longer-term trends that were masked temporarily by rapid growth in Prime members during the pandemic.
“That rebound may have been the last significant membership bump for Amazon Prime in the US, as it may have finally reached the theoretical and practical limit,” the firm says. “The return to in-person shopping and current economic uncertainty put further pressure on membership. Amazon Prime of course adds new US members each quarter, but now, just enough to sustain the member count.”
This is “a far cry from the years of double digit growth,” the firm adds.
The firm counts members as individuals who use Prime benefits, not the number of households that pay for Amazon Prime, CIRP co-founders Michael Levin and Josh Lowitz explain in the post.
They estimate that there were 167 million Prime customers in the U.S. as of March 2023, down from 170 million a year earlier, but note that the variance is within their standard margin of error.
Amazon doesn’t publicly disclose the number of Prime members as part of its financial reporting, although the company has periodically announced major milestones in its global Prime membership. The last announcement came when Amazon surpassed 200 million Prime members worldwide in 2021.
However, the company does report revenue from subscriptions, which includes “annual and monthly fees associated with Amazon Prime memberships” in addition to other subscriptions not associated with the Amazon Web Services cloud division. In 2022, that subscription revenue grew about 11% to $35.2 billion, a lower rate than the 17% price increase — additional evidence that Prime’s growth has plateaued.
Amazon Prime benefits include free shipping on Amazon purchases, Prime Video streaming movies and shows, member deals at Whole Foods Market, and other benefits. But some of those perks have been watered down.
- Amazon last year changed the terms of its Amazon Music tier for Prime members, significantly expanding the catalog but limiting the ability to control the specific songs that play.
- The company in January raised the threshold for Prime members to receive free Amazon Fresh grocery delivery to orders of $150 or more.
- Over the past year, some customers have experienced erratic shipping speeds that don’t always live up to Prime’s company’s promise of two-day delivery.
Amazon Prime has undergone several price increases since its launch in 2005. When it was first introduced, the annual cost of Amazon Prime was $79 per year, which included free two-day shipping on eligible items.
In 2014, Amazon raised the price of Prime to $99 per year, citing the rising costs of providing the service. In 2018, Amazon raised the price of Prime again to $119 per year, marking the first price increase in four years.
The increase in 2022 to $139/year was meant to help offset some of Amazon’s rising costs at the time, driven by factors including labor supply shortages, higher wages, supply chain issues, and additional shipping expense.
