Despite the growth in US Amazon Prime membership, many sellers are rethinking their Prime Day participation due to tariffs.
Despite rising tariffs and seller unease about shrinking margins, Amazon Prime subscription continues to grow steadily. For sellers, higher costs and changing customer expectations are forcing a tough question: is Prime Day participation still worth it?
These concerns are real, but Amazon is working to maintain Prime’s value to both customers and sellers. With a Prime membership now offering perks like Alexa+ integration, fuel savings, and free Grubhub+ delivery, alongside the traditional free shipping and exclusive deals, Prime benefits are expanding.
At $14.99 per month, or $139 per year membership fee, many customers see it as an essential service, helping keep demand strong for sellers who choose to stay in the program.
Amazon Prime membership grows as seller participation in Prime Day wavers
Despite a steady increase in US Amazon Prime subscription, many third-party sellers are scaling back their involvement in Prime Day due to rising tariffs and mounting cost concerns. According to a recent Reuters report, some merchants are pulling out of Prime Day entirely or significantly reducing the number of discounted items they offer.
Several Amazon sellers, particularly those importing goods from China, are now reconsidering the profitability of Prime Day participation. They cited steep tariffs up to 145% on some products as a key reason for skipping the event this year, Reuters reported.
Key points from the Reuters report:
Third-party sellers made up 62% of units sold on Amazon in Q4 2024.
Tariffs are forcing some sellers to delay or cancel Prime Day discounts to protect profit margins.
Fees and discount requirements for Prime Day participation are becoming increasingly burdensome.
Amazon’s own vendors are also reassessing pricing and inventory strategies ahead of Prime Day.
Despite these seller setbacks, US Amazon Prime subscription growth signals strong consumer demand that could help offset a thinner product selection during the event.
Digital Commerce 360"Just over a third of U.S. online shoppers (36.87%) made purchases on Amazon during the retailer’s 2024 Prime Day sale."
Amazon Prime membership positively viewed with continuous upward trend
Despite economic headwinds for some sellers, the Amazon prime membership base in the United States continues to expand. As reported by CIRP, their latest survey data from March 2025 indicates steady growth in the number of Prime members.
CIRP estimates that 196 million US Amazon customers held a Prime membership as of the first quarter of 2025. This figure represents an approximate 9% increase compared to the 180 million members reported in March 2024, showing continued, albeit slower, growth.
Notably, CIRP’s estimate counts individual Amazon shoppers who use Prime, which means the number is higher than the number of US households paying for the service. This indicates that the benefits of Prime are reaching a significant portion of the American consumer base.
- CIRP’s March 2025 survey estimates 196 million US Amazon Prime members.
- This represents a 9% growth year-over-year from 180 million in March 2024.
- The growth continues a trend observed by CIRP since they began tracking in 2012.
- The estimate reflects individual users, not just paying households.
- Despite earlier predictions of plateauing, Prime membership in the US is still increasing.
Rise of the dual subscription
The surge in Amazon Prime membership aligns with recent findings reported by PYMNTS, highlighting how consumers are maximizing benefits through multiple retail subscriptions. According to PYMNTS’ “How People Pay” report, more households are strategically subscribing to both Amazon Prime and Walmart+ to take advantage of savings, faster shipping, and exclusive perks.
Dual subscription adoption has nearly doubled since 2021, with almost one in four consumers now maintaining memberships with both Amazon Prime and Walmart+. This shift indicates a broader consumer strategy to optimize savings and compare offerings across platforms.
Numerator"Amazon Prime members spend 12% more annually than the average Amazon shopper, while Walmart+ members spend 76% more overall—31% more in-store and 206% more online."
Key findings from the PYMNTS report include:
Dual Subscription Surge
Nearly 25% of consumers held both memberships by February 2025, up from 12% in 2021.
Millennial Engagement
80% of millennials have either Amazon Prime, Walmart+, or both, with 37% subscribing to both services.
Crossover Retail Advantage
11% of Amazon Prime-only members made their last retail purchase at Walmart, but no Walmart+-only members did the reverse.
Grocery Shopping Trends
Just 1.3% of consumers bought groceries from Amazon for their last grocery purchase, with Walmart maintaining dominance.
Spending Behavior
Dual subscribers averaged $109.90 on their last retail purchase, significantly higher than single or non-subscribers.
Payment Choices
Credit cards are preferred for Amazon, while debit cards are often used at Walmart for convenience and budgeting.
Prime Beyond Retail
Only a small share of Prime subscribers use it mainly for shopping; many value streaming and other benefits.
This broader retail trend, as reported on PYMNTS, shows that while Prime membership continues to rise, today’s consumers are more strategic and selective in how they use subscription services.
Seller insights: Leveraging the dual membership trend
The increasing number of consumers subscribing to both Amazon Prime and Walmart+ presents significant insights for Amazon sellers. This trend indicates a customer base that actively seeks value and convenience across multiple platforms.
For Amazon sellers, this could signal an opportunity to diversify their sales channels. Collaborating with an experienced Amazon agency to expand and begin selling on Walmart’s marketplace could tap into this segment of dual subscribers.
By strategically positioning their products on both Amazon and Walmart, sellers can reach a wider audience of engaged online shoppers. This diversification can also help mitigate risks associated with relying solely on the Amazon platform, especially amid concerns about tariffs and Prime Day participation.
- The rise of dual Prime and Walmart+ memberships shows consumers value benefits across platforms.
- Amazon sellers can consider diversifying by starting to sell on Walmart.
- An Amazon agency can provide expertise to facilitate a successful expansion to Walmart.
- Selling on both platforms allows sellers to reach a larger pool of motivated online shoppers.
- Diversification can reduce reliance on a single marketplace.
