Amazon May Have Reached Peak ‘Prime’, But They’re the Only Ones Who Know
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