Amazon Prime shoppers make 50% of all Amazon purchases

Amazon Prime members are driving sales at Amazon (NASDAQ:AMZN), and now account for nearly half of all Amazon purchases, according to a new report.

Research firm Cowen and Co. surveys 2,500 U.S. consumers each month and asks which of seven retail websites they visited and from which they made purchases. This May, all websites included in the survey showed positive growth over both April and May of 2014.

The results also revealed the impact of Amazon's strategy to grow visits and sales through Prime memberships. Approximately 93 percent of Prime members visited the retailer's site in May, compared to 72 percent of non-Prime members, according to The Street. Nearly 82 percent of Prime members bought items from Amazon in May, compared to 45 percent of non-Prime members.

Prime purchasers now account for 46 percent of all Amazon purchasers, an increase of 9 percent from the same period last year.

"Positive Amazon results continue to be driven by higher Prime penetration, modestly offset by softness among the non-Prime cohort," John Blackledge, a Cowen analyst, wrote in the research report. "In our opinion, we think Amazon Prime continues to improve its product offering, such as the rollout of free same-day delivery for Prime members in 14 major cities in May, driving both retention and new Prime members."

Based on this survey, Cowen estimates that there are approximately 36 million Prime subscribers in the United States. In the past week, Amazon announced it would expand private label offerings to include grocery items and launch same-day delivery in 14 U.S. cities.

For more:
-See this The Street article

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