Amazon Prime Subscribers Hits 100 Million: $10 Billion in Annual Prime Revenue

Amazon CEO Jeff Bezos says 100 million people pay for Amazon Prime. This is the first time Bezos disclosed the number.

Amazon, which has never disclosed the number of Prime members before, revealed the figure in Chief Executive Jeff Bezos’s closely followed annual letter to shareholders. The company said in late 2015 that it had “tens of millions” of Prime customers.

Numbers

  1. $9.72 billion: Amazon's revenue last year earned directly from subscription services, including Prime
  2. $1,300: How much the average Amazon Prime shopper spends annually
  3. $700: How much the average Amazon Non-Prime shopper spends annually

The Prime numbers are global. Amazon added more Prime members in 2017 than any previous year.

Amazon offered Prime in Mexico, Singapore and the Netherlands in 2017.

Mike "Mish" Shedlock

Comments (8)
No. 1-8
KidHorn
KidHorn

I'm a prime member. More than pays for itself and I get amazon video and music for free.

thimk
thimk

IMHO amazon video and music is a loss leader . This company is way over valued (PE 338) . there has been a paradigm shift in stock market valuations from fundamental models( e.g. present value of future earnings) to who knows what models. This company has been able to grab market share with cheap money, subsidized product delivery costs(USPS), no sales tax, Chinese imports/knockoffs,state tax incentives. Oh i and wonder how much money they will make selling your buying history.

FloydVanPeter
FloydVanPeter

Buying history is a concern. Also, it is just too easy to buy, which leads to unneeded staff. Takes discipline to skip or postpone purchases ...

MntGoat
MntGoat

People always think of their retail delivery but they also have AWS. AWS is a very high margin business and they are the global leader in cloud services. I was reading where the US Gov is going to sign a contract for billions to use AWS. But yeah, I am no stock analyst, so I have no clue about their valuation and I'm sure they are likely overvalued like so many others. They also pretty much have a global monopoly on book selling.

Carl_R
Carl_R

Bizarre. I spend more than the average Prime member every year, but see no value in Prime at all. I doubt I spend more than $15-20 a year in freight anyway, and have no use for the music or video. Of course, I'm buying stuff for my business, and I can place my orders weeks in advance, so have no particular reason to want fast delivery.