In 2005, Amazon introduced Prime, a $79 premium membership offering unlimited two-day shipping that today has evolved into one-day shipping.
Initially born from an engineer's frustration with Amazon's complex free shipping rules, Prime has expanded into manufacturing voice assistants, cloud computing services, and more.
As the giant turns 19 this year, we examine the latest Amazon prime statistics regarding users, growth, and revenue.
Stay tuned for an in-depth exploration of the past, present, and future of the world's fifth-largest company in 2024.
General Amazon Statistics:
- Amazon Prime Has Around 180 Million Members
- Amazon Sold Over 375 Million Items on Record-Breaking Prime Day in 2023
- Amazon Ranked as 8th Most Visited Website of 2023
- The U.S. Dominates Amazon's Web Traffic
- Amazon Acquired MGM in an $8.45 Billion Deal
- Amazon Owns Over 40 Brands and Subsidiaries
- Amazon's Market Capitalization Reached $1.6 Trillion in Early 2024
- Amazon Reported $143.1B in Q3 2023 Revenue
- Amazon Q3 2023 Ad Revenue Hit $12.06 Billion
- Prime Video's TNF Viewership Increased 25% to 12.9 Million
- Amazon Prime Video Ad-Free Cost Now $17.98
- Amazon Employs Around 1.5 Million Workers
- Amazon's 2023 Layoffs: Over 18,000 Jobs Cut
Latest Amazon Prime Statistics in 2024: Users and Sales
Amazon Prime Has Around 180 Million Members
Recent data shows that Amazon's Prime membership reached 180.1 million in 2023. But how much money do subscribers generate for the company?
A Bank of America survey indicates that Prime members spend around $2,000 annually on Amazon, four times more than non-Prime users.
Since its launch almost two decades ago, Amazon Prime has garnered over 200 million subscribers in more than 25 countries, including the U.S.
Amazon Sold Over 375 Million Items on Record-Breaking Prime Day in 2023
Amazon's 2023 Prime Day set a new record, selling over 375 million items on July 11th - the highest single-day sales in the company's history.
During the 48-hour event, Prime members saved over $2.5 billion on discounted items from various categories.
Top-selling deals included electronics, self-care, and home goods, with products like the Fire TV Stick, Laneige lip balm, Apple AirPods, and Bissell carpet cleaners leading the way.
Small businesses also thrived, marking their most successful Prime Day sales. According to Adobe Analytics, Amazon raked in $6.4 billion in revenue on the first day alone.
The User Landscape on Amazon's Website: the Largest Retailer in The U.S.
Amazon Ranked as 8th Most Visited Website of 2023
Recording over 2 billion monthly visits, Amazon secured the 8th position as one of the top websites globally in 2023.
According to SimilarWeb data, it's the number one retailer in terms of clicks.
Closing 2023, Amazon's traffic increased by 3.2% compared to November due to the holiday shopping.
The U.S. Dominates Amazon's Web Traffic
The U.S. leads the pack in terms of web shopping, providing almost 84% of Amazon's global traffic.
Canada and India trail behind, each contributing slightly over 1% to Amazon's worldwide shopping community.
Brands that Amazon has Bought to Enhance its Service
Amazon Acquired MGM in a $8.45 Billion Deal
In 2022, Amazon completed its $8.45 billion purchase of MGM Studios, marking its second-largest deal after acquiring Whole Foods for $13.7 billion in 2017.
The deal hands Amazon an extensive catalog of over 4,000 films and 17,000 TV episodes. Classics like James Bond, Rocky, Robocop, and more now fall under Amazon's entertainment umbrella.
Amazon Owns Over 40 Brands and Subsidiaries
As a colossal conglomerate, Amazon presides over an extensive portfolio of owned and operated companies.
Today, the tech giant's holdings include over 40 prominent brands and subsidiaries, including well-known names like Whole Foods, Twitch, IMDb, and Audible.
Amazon's Corporate Statistics: Value, Earnings, and Recent Layoffs
Amazon's Market Capitalization Reached $1.6 Trillion in Early 2024
As of February 2024, Amazon's market cap surpassed $1.6 trillion, solidifying its rank as the world's fifth most valuable public company.
Amazon Web Service's (AWS) dominance in cloud computing propelled Amazon's market cap past the $1 trillion mark in 2018.
The primary driver of Amazon's value is its thriving Amazon Web Services (AWS) division, which is responsible for most of the company's operating income.
Amazon Employs Around 1.5 Million Workers
Amazon relies on a massive workforce to drive its various operations.
Recent data shows that the company employs over 1.5 million workers globally, with staffing peaking at 1.62 million in early 2022 due to increased demand during the pandemic.
Despite subsequent layoffs and hiring adjustments, Amazon's workforce remains robust, surpassing industry players like Microsoft and rivaling retail giant Walmart.
Amazon's 2023 Layoffs: Over 18,000 Jobs Cut
In 2023, Amazon cut over 18,000 jobs in corporate and technology roles to streamline operations, Business Insider reported. The goal was to improve efficiency across the company's various units.
Amazon's Twitch reduced its workforce by 35%, while Amazon Studios saw a cut of approximately 100 employees in early 2023.
These layoffs surpassed any in Amazon's history.
Amazon Reported $143.1B in Q3 2023 Revenue
In Q3 2023, Amazon's financial performance excelled, with net sales reaching $143.1 billion, a 13% increase compared to the previous year.
Across different segments, North American net sales grew by 11%, totaling $87.9 billion, and international sales increased by 16%, reaching $32.1 billion.
Amazon Q3 2023 Ad Revenue Hit $12.06 Billion
In Q3 2023, Amazon's advertising business hit $12.06 billion in sales, marking a 26% increase from 2022 and surpassing the predicted $11.6 billion.
The ad portfolio includes sponsored product listings, display ads, and video placements on platforms like Prime Video and Freevee.
Exclusive NFL Thursday Night Football broadcasts also offer prime ad opportunities.
Amazon Prime Video's Latest Stats: The Platform's Live Streaming Bet
Prime Video's TNF Viewership Increased 25% to 12.9 Million
Prime Video's second season of exclusive NFL Thursday Night Football (TNF) coverage achieved significant viewership gains, hitting 15.1 million for the season opener, a Prime Video record.
Across the initial six TNF matchups, Prime Video averaged 12.9 million viewers, marking a 25% increase from last season.
Prime Video's TNF viewers are notably younger, with a median age of 47, compared to 54 on traditional networks.
Amazon Prime Video Ad-Free Cost Now $17.98
In January 2024, Amazon Prime Video started including ads.
Now, if you prefer an ad-free experience, you can opt out by paying an extra $2.99 monthly.
That increases the standard $14.99 Prime subscription to $17.98 or the $8.99 standalone Prime Video subscription to $11.98
Conclusion:
Introduced in 2005 for speedier shipping, Prime has become Amazon's flagship subscription with over 180 million members.
Originally designed for quicker deliveries, it has expanded to include streaming and discounts, shaping Amazon's success.
Though it started slow, Prime gained popularity as online shopping habits changed. Over nearly two decades, it became a key growth factor, setting expectations for speedy deliveries.
As convenience became standard, Amazon's dominance can be credited to the value Prime offers. It not only set the subscription standard but also changed how people approach large-scale commerce.
FAQ
Why is Amazon Introducing Ads on Prime Video?
Amazon states that the introduction of ads is aimed at sustaining investments in compelling content for the long term.
The move allows the company to continue expanding its content library.
How Did Amazon Prime Start?
In 2005, Amazon engineer Charlie Ward suggested a faster shipping option to solve customer complaints about the $25 minimum and slow delivery for free shipping.
Ward's idea reached CEO Jeff Bezos, who formed a team to turn it into Prime.
Prime offered unlimited two-day shipping for an annual $79 fee, gaining tens of thousands of subscribers in its first month.
When Did Amazon Launch Amazon Studios?
Amazon Studios was launched in 2010 to create original movies and TV shows exclusive to the platform.
Summary:
Amazon Prime Has Around 180 Million Members
Amazon Sold Over 375 Million Items on Record-Breaking Prime Day in 2023
Amazon Ranked as 8th Most Visited Website of 2023
The U.S. Dominates Amazon's Web Traffic
Amazon Acquired MGM in a $8.45 Billion Deal
Amazon Owns Over 40 Brands and Subsidiaries
Amazon's Market Capitalization Reached $1.6 Trillion in Early 2024
Amazon Employs Around 1.5 Million Workers
Amazon's 2023 Layoffs: Over 18,000 Jobs Cut
Amazon Reported $143.1B in Q3 2023 Revenue
Amazon Q3 2023 Ad Revenue Hit $12.06 Billion
Prime Video's TNF Viewership Increased 25% to 12.9 Million
Amazon Prime Video Ad-Free Cost Now $17.98
Why is Amazon Introducing Ads on Prime Video?
When Did Amazon Launch Amazon Studios?
Sources:
- The making of Amazon Prime, the internet's most successful and devastating membership program
- The History of Amazon and its Rise to Success – Michigan Journal of Economics
- Amazon Prime subscribers are very unhappy with its latest controversial change
- 2020 Letter to Shareholders
- The first day of Prime Day was the single largest sales day ever on Amazon, helping make this the biggest Prime Day event ever
- amazon.com Traffic Analytics, Ranking Stats & Tech Stack | Similarweb
- Amazon Closes $8.5 Billion MGM Deal—Adding Blockbusters To Its Platform
- Amazon Subsidiaries
- Amazon (AMZN) - Market capitalization
- Amazon is laying off 'several hundred' employees across Prime Video and Amazon MGM Studios — read the memo
- Amazon.com Announces Third Quarter Results
- Amazon Blows Past Q3 Expectations, Ad Revenue Jumps 26%
- Prime Video’s Thursday Night Football Finishes 2023 Season W
- Reminder: Amazon Prime Video is getting ads today