Is Prime Paying Off for Amazon?

24/7 Wall St. Inc. (NASDAQ: AMZN) can claim 40 million customers for its $99-a-year Amazon Prime service. That amounts to about $4 billion in membership fees. Amazon can also claim an annual average of $1,500 in purchases from Prime members, which adds up to a tidy $60 billion. Add in the non-Prime customers, who spend an annual average of $625, and it is not hard to reach Amazon’s 2014 revenue total of $89 billion.

Now Amazon does not exactly hand out this sort of data, so research firm Consumer Intelligence Research Partners had to dig it out. According to a report at GeekWire, the research firm surveyed 500 of Amazon’s fourth-quarter U.S. customers to reach its conclusion on spending. The researchers also noted that owners of an Amazon Kindle device spend almost as much as do Prime members — $1,450, double the amount on non-Kindle owners.

The amazing thing about Amazon is that even with…

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