Monthly and Annual Prime Members are Similar and Different

We continue thinking about how Amazon Prime members pay for a membership, and what this tells us about these customers and the Amazon Prime program. As a reminder, about half of Amazon Prime members pay monthly for their membership, and about one quarter of those members stop their membership on occasion.

Not surprisingly, Amazon Prime members who pay for their membership monthly and have stopped their membership temporarily at some point spend somewhat less than their uninterrupted membership counterparts (Chart 1). The difference between uninterrupted monthly-pay members and annual pay members surprised us, however.

Table 1: Annual and Monthly-Pay Prime Member Shopping (twelve months ending March 2023)