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

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.”

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