Amazon Prime: 5 Facts to Know About Amazon Prime

Amazon PrimeAmazon Prime is a favorite not just for online shoppers, but also for Amazon.com, Inc. (NASDAQ:AMZN) stock investors. When you have unlimited two-day shipping on nearly every item you need, why shop on any other e-commerce web site? Better yet, why go out to physical stores anymore?

Here are five facts you need to know about “Amazon Prime.” The last one will even show you how to get a month or two of your Amazon Prime membership for free—and I’m not talking about the 30-day free trial.

1. Amazon Prime Is Packed with Perks

One of the reasons why Amazon Prime memberships are so popular is the sheer number of perks they offer. Who would have thought that by signing up for an online shopping membership, you could also get a free unlimited on-demand video streaming service?

Right now, if you sign up for Amazon Prime in the U.S., you would get free two-day shipping, unlimited movies and TV shows from Prime Video, unlimited music streaming, over a million eBooks, unlimited photo storage, and same-day delivery in eligible areas. All that costs just $99.00 a year.

2. There Is a Prime Day

For Amazon Prime members, there is an annual event called “Prime Day.” On that day, Prime members can shop tens of thousands of deals across nearly every category on Amazon. The company just had its second annual Prime Day and it was a huge success.

On this year’s Prime Day, customer orders surpassed last year’s by more than 60% worldwide and more than 50% in the U.S. The event also marked the biggest sales day ever for Amazon’s own devices, including “Fire TV,” “Fire” tablets, “Kindle” e-readers, and “Alexa”-enabled connected devices. (Source: “Amazon’s Prime Day Is the Biggest Day Ever,” Amazon.com, Inc., July 13, 2016.)

3. Amazon Prime Members Spend More

With all these perks, it shouldn’t be a surprise that online shoppers embraced Amazon Prime membership. But did you know that Amazon Prime members also tend to spend more on Amazon?

According to Statista’s most recently measured survey, which was conducted in June 2016, Amazon Prime members in the U.S. spent an average of $1,200 on Amazon every year. This compares to $500.00 of spending on Amazon from non-Prime members in the U.S. (Source: “Average Annual Amount Spent on Amazon According to U.S. Amazon Prime and non-Prime Members as June 2016,” Statista, last accessed July 26, 2016.)

4. Amazon Prime Has Tens of Millions of Members

Amazon does not release the exact numbers of its Prime userbase. However, back in December 2013, the company said that it had “tens of millions of members worldwide” at the time. (Source: “Record-Setting Holiday Season for Amazon Prime,” Amazon.com, Inc., December 25, 2013.)

Fast-forwarding to 2016, Amazon Prime membership should likely have grown quite a bit. A report from Consumer Intelligence Research Partners estimates that in the U.S., Amazon Prime membership jumped 35% last year to 54 million. Since few households have multiple Prime memberships, this could mean that around 46% of all U.S. households have at least one member. (Source: “Amazon Prime Now Reaches Nearly Half of U.S. Households,” CNN Money, January 26, 2016.)

5. Get One Extra Month of Amazon Prime Membership for Free

Remember the last time you bought something on Amazon and it didn’t arrive on the “guaranteed delivery date?” Well, that could give you one extra month of your Amazon Prime membership for free.

If you are an Amazon Prime member and the promised delivery date isn’t met, you may be eligible for a free one-month extension of your Prime membership. However, it won’t happen automatically. You have to ask Amazon’s customer service for the extension. Prime extensions are limited to 12 for an annual membership. (Source: “Guaranteed Accelerated Delivery Fine Print,” Amazon.com, Inc., last accessed July 26, 2016.)