The Seattle online retailer is estimated to have had 54 million U.S. Prime members at the end of 2015, up 35% from 40 million a year earlier, according to an analysis from Consumer Intelligence Research Partners. But the coveted customers appear to be spending less.
Chicago-based CIRP estimated Prime members spend about $1,100 on average per year, down from $1,500 per year in 2014. Non-Prime members accounted for about $600 in spending on average, compared with $625 the year prior.
And the rate of growth in signups slowed to 35% from 54% in 2014, according to CIRP’s estimates.
Still, those Prime members could have contributed to more than $5 billion in fees alone, assuming all of them pay the full $99-per-year price. (Amazon offers occasional discounts and a reduced rate for student memberships.)
For his next article, Bensinger will use a Ouija board to contact Steve Jobs and ask his opinion of the choices Apple has made since Jobs died in 2011. (I hope he has a fire extinguisher handy; Jobs was known for using strong language.)
Seriously, folks, it's one thing to report an analysts estimates, but something else entirely to try to draw conclusions (or ask open-ended questions) about the company mentioned in the estimates.
The first is okay, but the latter is a mistake. Those estimates have nothing to do with the company; they are simply guesses made by an analyst and should be treated with the same care as unfounded hardware rumors.
image by hnnbz