US financial services firm Cowen has been looking at the type of users who use Amazon US Prime and the results show that they are both younger and richer than the consumers of key competitors.
The survey shows that Amazon US Prime subscribers had an average household income of $69,300 in 2015, 10% above the average Amazon customer and 19% greater than the survey average that specifically looked at customers from Target, Walmart, Costco and Macy’s.
They say the median age of a Prime subscriber weighs in at 36.5 years old and that is younger than those for Target and Macy’s (37), Costco (39), Amazon in general (40), Walmart (42) and the entire survey (43).
And the average Amazon shopper has a household income of $62,900 which is 12% more than Walmart but behind Target (6%), Costco (19%) and Macy’s (21%).
It’s a well established fact that Amazon Prime members are vital to the marketplace. They give greater loyalty and spend more money over time and buy more frequently. That there is an upfront subscription fee also points to more affluent users. But these findings do lend more credence to the prevailing wisdom that they are vital for sales and longevity and shows why Bezos is so keen to nurture them and increase the Prime offering.
It would be unsurprising if UK Prime members showed similar characteristics and were better off and younger than the average. But Amazon don’t provide such numbers for our delectation.
