Amazon Prime Membership Jumps

NoDerog / Getty Images

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. 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.)

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.