Amazon Prime members spend almost twice as much as other Amazon shoppers

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Amazon—which is set to unveil its first smartphone this week—is smart to continue investing in its Prime subscription service: A recent survey by RBC Capital Markets, summarized today in a research report, suggests it’s working.

Amazon Prime members surveyed said they spend $538 per year, on average, at Amazon—68% more than the $320 per year that non-Prime respondents said they spend on Amazon. Some 61% of respondents said they’ve spent more money on Amazon after becoming Prime subscribers than before. And Prime subscribers were more likely to have spent more than $200 over the prior 90 days.

Amazon Prime spending chart

RBC analyst Mark Mahaney’s takeaway: “If Amazon’s goal is to get its users to increase their frequency and spend with Amazon, then Prime seems like a good program.”