A major force behind the anticipated success of Prime Day 2020 is this year’s growth in Amazon Prime members. Since Prime membership is required to take advantage of deals, the event—and the free media exposure leading up to it—function as a huge membership drive. Prime Day lowers Amazon’s customer acquisition costs and increases customer lifetime value. The company reported that last year’s Prime Day event delivered the highest-ever number of new Prime membership sign-ups over a two-day period. Earlier this year, CEO Jeff Bezos revealed that Prime membership had surpassed 150 million worldwide, just two years after reporting it had reached 100 million.
We forecast that the number of US Amazon Prime memberships will grow by 14.9% to 142.5 million US users in 2020, surpassing 50% of the US population for the first time. This is a sizable upward revision from our previous forecast of 7.4% growth to 133.1 million. Fast and free shipping remains the top reason for subscribing to Prime, but Prime Video has become an important benefit that attracts new members and keeps them around.