Amazon Prime Membership Skyrockets to 180 Million in the US Despite Inflation Headwinds

📝 SUMMARY: Amazon's ($AMZN) Prime service reached a new milestone with 180 million U.S. members, marking an 8% increase from last year, as the platform's rapid delivery and broad product range continue to attract consumers despite rising competition. The growth follows a period of stagnation post-pandemic, suggesting a robust recovery driven by sustained consumer interest in the benefits of Prime membership.

Amazon Inc. has achieved a significant milestone in its Prime subscription service, recording a new high of 180 million U.S. shoppers in March, an increase of 8% from the previous year. This data, provided by Consumer Intelligence Research Partners (CIRP), highlights the continued appeal of Amazon's promise of fast delivery and a diverse product assortment, even as shoppers face inflationary pressures and growing online competition from firms like Walmart Inc. and various China-linked companies, including TikTok Shop, Shein, and Temu.

The rise in membership is noteworthy, especially considering the flat growth observed after the pandemic. CIRP had previously speculated that Amazon had reached a saturation point in its membership growth. However, the latest figures indicate that 75% of U.S. shoppers now have Prime memberships, showcasing a resurgence in consumer interest and the perceived value of the subscription, which costs $140 annually or $15 monthly. This fee includes several benefits such as shipping discounts and access to the ad-supported Prime Video streaming service.

Prime's growth dynamics are slightly more complex than direct subscription counts, as CIRP's measurement accounts for all individuals within a household who have access to Prime benefits, not just the account holders. This method suggests a broader utilization of the service's features across households.

In 2021, Amazon reported having 200 million global Prime members, the last public figure before this latest update. The company regularly reports subscription service revenue, which is predominantly derived from Prime memberships. Analyst expectations point to Amazon reporting a 12% increase in subscription service revenue to $10.8 billion for the quarter ending March 31, highlighting the significant financial impact of this growing subscriber base.

As Amazon continues to expand its service offerings and refine its membership benefits, the company solidifies its competitive position in a challenging retail and digital landscape. This adaptability may be key to sustaining growth momentum amid variable economic conditions and increasing market competition.

🔍 SOURCE: https://finance.yahoo.com/news/amazon-prime-memberships-us-gain-175715711.html