While Amazon Prime membership reached a milestone in 2018, surpassing 100 million, one report suggests that membership could reach 275 million by 2029, as projected by Citigroup.
Citigroup analysts concluded that Wall Street does not appreciate the full value of the Prime service, also projecting that Amazon could see more than $500 billion in Prime-related gross sales per year within a decade.
“Prime has been a tremendous success,” Citigroup analyst Mark May wrote in a research note. “Prime members are growing 35% to 40% per annum. There are many benefits of having highly satisfied membership-based customers, but a simple metric is that most studies suggest Prime members spend twice as much as non-Prime members.”
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Further, May said that significant international growth could be on the horizon, with overseas members spending $35 to $40 per month compared to the $120 per month spent by American Prime members.
Amazon currently offers Prime in 16 countries, including Japan, Germany, Canada and India.
May anticipates Amazon’s annual gross merchandise sales to top $630 billion by 2029. While shares of the e-Commerce giant topped $2,000 for the first time to close out August, May projects the price to reach $2,250 over the next year — well ahead of his previous target of $2,100.
