Amazon Prime members get a lot of benefits, including free 2-day shipping and unlimited access to Amazon’s video and music streaming services, to name a few.
That seems like a lot for a membership that costs $99 a year (or $10.99 a month). But this chart by Deutsche Bank shows why Amazon may want to offer more free perks and increase its number of Prime members: they simply spend more than non-Prime users.
According to Deutsche Bank’s own estimates, Prime users’ spending now accounts for nearly 60% of Amazon’s gross merchandise value (GMV), or the total value of the goods sold on its site. That’s a lot of money given Prime users represent less than 20% of the total Amazon customer base.
On top of that, Prime users tend to increase their annual spending on Amazon, Deutsche Bank said. Customers double the amount they spend on Amazon after they become a Prime user, and triple it by the second year of their membership, it said.
Amazon has never disclosed the number of Prime users, but Bernstein estimates there are up to 69 million in total.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.