CIRP estimates that the average Amazon Prime customer spends $1,500 per year on the e-commerce site, compared with $625 for nonmembers. At the end of 2014, Amazon Prime had 40 million US members, up from an estimated 29 million at the end of the third quarter, data from Consumer Intelligence Research Partners shows. Startups including Instacart and Postmates are also getting in the mix.Īmazon Prime has proved lucrative for the online retailer. Also, Google has been developing its Express shipping service and Uber is dabbling in deliveries. Walmart will test out a $50-a-year unlimited shipping service, eBay plans to pilot a buyer loyalty program in Germany, and startup Jet.com, which hasn't officially launched, is looking to offer a member-focused online marketplace. In addition to helping attract more occasional shoppers, the new offering could help Amazon expand its tens of millions of Prime customers - who pay $99 a year for free shipping, a streaming video library and cloud storage - during a time when the e-commerce giant is staring down plenty of new competition. "Customers love that even if it's a $5 item, shipping is free for everybody, Prime member or not," Neil Ackerman, a senior manager at Amazon, said in a statement. Free two-day delivery for non-Prime subscribers usually requires a $35 minimum order. The items will typically be delivered in three to eight business days, as opposed to the free two-day shipping offered to Prime subscribers. Thousands of products weighing less than 8 ounces will ship for free through the e-commerce company's new "Small and Light" program, an Amazon spokesman said Tuesday. In the face of growing online delivery competition, Amazon has begun offering free shipping on small items like makeup and mobile phone accessories, without requiring a minimum order or a subscription to Amazon Prime membership program.
Amazon offers free shipping on small items, no membership required.
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