100 Million Subscribers for Amazon Prime
Amazon is one of the leading e-commerce company that offers online retail, consumer electronics, daily deals, groceries and many such services. The Net Sales of Amazon is almost around 136 billion U.S. dollars. The majority of the company’s income is generated through the e-retail sales of products followed by third-party seller revenues and subscription services.
Amazon Prime is an annually or monthly paid membership scheme which is the part of the Amazon’s subscription service agreement. You just need to spare $99 to become the Prime member of Amazon. Amazon Prime members receive a handful of benefits which include Free Fast Shipping for the eligible products, streaming of movies, TV shows and Music, Exclusive shopping deals, unlimited reading and much more. These are the key reason for subscribing to the Prime service.Amazon has kept the number of its prime subscribers close to the vest, but the online retailer has just announced about the number of Prime members they have. Jeff Bezos, the CEO of Amazon revealed that Amazon has more than 100 million Prime Members. The sources estimate that more than 60 percent of Amazon customers in the US are Amazon Prime members. Amazon Prime is the major reason for the dominance of Amazon in the online retail market.
This is the first time Amazon has released the worldwide subscriber number for its Prime Service which was launched in 2005. Amazon Prime Users gets lots of benefits like access to prime videos, music, fast shipping and much more. Amazon is also planning to add whole food deals to the pile of benefits in the future. Jeff Bezos stated that Amazon shipped about five billion items with Prime globally in 2017. India is the latest country where Prime has been launched and the market has been growing consistently. More number of users in India subscribed to Prime in its first year than compared to any other countries in the world. So, Amazon has planned to launch Amazon Music service in India by the month of February.
Amazon offers certain handpicked products exclusively to their Prime members. Amazon lets the prime members save up to $15 on every product from beauty to home goods. Amazon hosts a special sale for its Prime users named as the Prime Day. This shopping is only for the Prime members of Amazon. Amazon Prime users get access to the special sales like New Year sale, Christmas Sale, Black Friday sale etc., before the general public. Also, Amazon provides special coupons and Promo codes to its Prime users that provide cashback offers depending upon the type of Product.
Amazon Prime members get free shipping within two days of ordering depending on where you live and what you buy. You can even get the products from the Amazon the same day you ordered. If Amazon Prime’s delivery is late, Amazon has refund policies which are the good one. If Prime Member doesn’t get the product delivered within two days on a two-day shipment or the time specified will qualify for one free month of Amazon Prime. Bezos stated that the Prime one-day delivery facility is available in more than 8000 cities and Amazon Now which delivers the goods to customers in just a few hours is available in more than 50 cities.
All these benefits are the reason why the customers of Amazon opt for Prime membership. For Amazon, at 100 million subscribers each paying $99 per year, the company generates nearly $10 billion revenue even before the customers buy a single product. Prime Users of Amazon spent about an average of $1300 per year on the platform, whereas the nonsubscribers spent about $700. Thus, it is clear that Prime Members are the most frequent visitors to the service and makes a purchase more often than the nonsubscribers.
Also, Amazon Prime members quickly adapt to the browsing behaviors on the platform. Half of the Prime users visit Amazon website to browse for the new deals and daily discounts which is the behavior exhibited by just one-third of the other shoppers. Jeff said that 2017 was the best year for Amazon hardware as customers bought about ten million of Echo, Echo Dot devices and Fire TV sticks which made them the best-selling product. According to the reports, for the first time, more than half of the products sold by Amazon in 2017 were from the third-party sellers of the company which includes the small and midsize business.
Jeff Bezos also stated that Amazon Music also continues to grow at a rapid phase and it currently has more than ten million paid subscribers. He added that the membership of Amazon’s music-streaming service has been doubled over the past six months. While Spotify and Apple music have more than 71 and 36 million paid members, Amazon has a long way to go to catch up these biggest competitors. Amazon’s Web services unit is on a $20 billion annual revenue and the rate of income is accelerating in the artificial intelligence sector.
Amazon invested a lot in Prime Video to build its Prime member base to compete with the streaming service provided by Netflix and Hulu etc., Prime Video continues to attract many customers and hence Prime video is made even better for customers by adding award-winning Prime originals like “The Marvellous Mrs. Maisel” which won two Critics Choice awards and two Golden Globes awards. Amazon’s streaming of NFL games grabbed more than 18 million viewers over 11 games. Amazon paid about $50 million to stream the NFL games which means it costs $2.78 for each viewer.
Netflix has about 125 paid subscribers, which stays at the top of the list. But Note that Amazon Prime is only a part streaming service. This puts Amazon Prime in a position to provide a wide variety of services than any direct competitors. Though Amazon Prime cannot dominate in every category that Netflix does in video streaming video, but the company’s wide reach in all other categories like groceries, smartphones will certainly help Amazon to gather upper hand.
A study states that 95% of the current Prime subscribers will definitely or probably renew their Prime subscription. Prime has been highly successful in subscription renewals rate. It got the customers to get the most out their Prime Subscription by providing various deals and offers. Amazon Prime is definitely one of the best services provided by Amazon.