How loyal are Amazon Prime members?

One of Amazon’s major long- term initiatives is to grow the membership of its Prime program, which gives subscribers a variety of perks, from free shipping to streaming videos and music, in exchange for an annual fee.

The company has always been tight- lipped about the number of Amazon Prime members it has. Current estimates point to 65 million, with one estimate at putting it at 90 million.

Regardless of the precise number, one of Amazon’s challenges nowis not just to attract newPrime members, but also to make sure its existing ones stick around from one year to the next. Its success at that is measured by its membership renewal rate.

No surprise, the company doesn’t share the renewal rate of Amazon Prime members either. However, a recent survey of 1,000 Amazon Prime members found that 74% of them planned to renewnext year. Thatmay seem high, as it is a comfortable majority, but it pales next to the lowchurn of a company such as Costco, which claims a membership renewal rate of 90%.

Truth be told, Amazon’s renewal rate is probably higher than the survey suggests. That’s because Prime members are enrolled in autopay by default. As a result, it’s not unreasonable to think that a healthy share of members who might have left if forced to think about it actively will renew simply out of inertia.