Perhaps unsurprisingly, the coronavirus pandemic has helped to boost Amazon Prime memberships in the U.S., according to a research firm.
Amazon Prime's U.S. membership base grew to 118 million individual members as of March 31, which shows consistent growth for the service even in the maturing American market, wrote Consumer Intelligence Research Partners on Monday.
“Amazon Prime membership continues to impress,” said Josh Lowitz, partner at CIRP. “Just when we think it will plateau, it keeps growing. Year-over-year growth has been consistent in the past three years, and we saw decent growth in the March 2020 quarter."
The coronavirus fueled part of this growth, with signs of extra growth in the last two weeks of the quarter as stay-at-home orders spread in U.S. cities, he said. Amazon also found success in converting trial memberships into paid memberships, with the conversion rate for 30-day trials increasing to 70% last quarter after trending downward in recent years.
"The retention rate for one- and two-year members was down slightly in the past year, probably as some of those members switch to monthly payment plans and are on hiatus when surveyed during the year,” added Mike Levin, partner at CIRP.
By CIRP's count, Amazon has added approximately 18 million paid U.S. subscribers since December 31, 2018.
Amazon doesn't regularly disclose its number of Prime memberships, but said it had more than 150 million Prime subscribers globally in January 2019.
Amazon has seen surging demand for its core e-commerce business since the coronavirus pandemic hit, with millions of consumers staying home and ordering essential goods like food and household supplies online.
Shares of Amazon closed 0.84% higher on Monday to $2,395.00, and have risen about 27% year to date amid optimism over the company's long-term prospects in e-commerce and cloud.