Amazon Prime is among the e-commerce giant’s most effective weapons. It tethers online buyers to the site. There is evidence that Prime buyers shop Amazon more often than non-Prime buyers. Amazon.com Inc. (NASDAQ: AMZN) also uses Prime to draw sellers.
Consumer Intelligence Research Partners just released a study showing that Amazon Prime membership rose 8% to 180 million in March compared to the same month of last year. Prime members pay $15 a month or $140 a year. As part of a membership, they get free shipping on many items, special deals that often include discounts, and Prime Video, a competitor to Netflix. These factors have helped increase the membership. According to Bloomberg, “The most recent data, showing 75% of US shoppers have Prime memberships, is a clear indication that Amazon is still gaining new subscribers.”
Costco Wholesale Corp. (NASDAQ: COST) is the only major retailer with a similar model. The big-box retailer charges between $60 and $120 annually for membership. One crucial difference is that non-members cannot shop at Costco at all. As with Costco, membership is a revenue stream of its own.
Amazon needs every advantage it can get. As the largest e-commerce company in America, it has thousands of rivals. Nevertheless, its North American online revenue was $106 billion in the fourth quarter of last year, up from $93 billion in the same quarter the year before. (See how much money Amazon makes every minute.)
∴
Are You Ahead, or Behind on Retirement?
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?
Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes.
Why wait? Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
