Amazon just shared new numbers that give a clue about how many Prime members it has




Amazon CEO Jeff Bezos

Amazon has finally shared more financial details around its Prime user base, giving a clue to just how popular its membership service really is.


According to its latest 10-K annual report, Amazon generated roughly $6.4 billion in sales from "retail subscription services," a newly broken out category that includes revenue from all of Amazon's subscription services, such as its Prime, audiobook, e-book, and digital video and music services.

And with a quick back-of-the-envelope calculation, that revenue would translate to about 65 million Prime members worldwide, Morgan Stanley's analyst Brian Nowak writes in a note published Monday. Amazon has never disclosed the number of its Prime members.

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Nowak came up with the number based on the assumption that 90% of Amazon's retail subscription revenue came from Prime members, and by putting an average price tag of $88 per user for each subscription (Prime costs $99 a year in the US, but is cheaper in other countries like Japan and the UK).

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Morgan Stanley


Prime is one of the most important parts of Amazon's business because Prime members tend to spend more on Amazon's online shopping platform. A recent survey by Morgan Stanley estimated that about 40% of Amazon Prime members spend over $1,000 a year on Amazon, while only 8% of non-Prime shoppers do so. It also found that Amazon Prime members spend about 4.6-times more money on Amazon than non-Prime members.

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Morgan Stanley

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