Prime Seen As Amazon.com, Inc. (NASDAQ:AMZN)’s Future
Amazon.com, Inc. (NASDAQ:AMZN) recently broke down the pricing of its Amazon Prime program in a way that lowered the barriers to entry. The company originally offered Prime as an annual subscription, but customers can now sign up for monthly packages. The company also came up with a standalone Prime Video package that is priced monthly.
Through Prime program, Amazon.com, Inc. (NASDAQ:AMZN) has been able to create a strong base of highly loyal customers. For example, when it comes to online shopping, nearly all Prime members shop at Amazon exclusively.
Amazon Prime tiers
Prime Video at $8.99 a month
The standalone Prime Video services costs $8.99 a month and gives subscribers access to unlimited movies and TV shows. Video is one of the popular offerings under Prime and that explains why Amazon.com, Inc. (NASDAQ:AMZN) is busy building its video business through a combination of original shows and size of the catalog.
Prime monthly $10.99
Amazon’s Prime monthly package costs $10.99 and gives subscribers access to all the services available under the legacy annual plan. Those services include the ability to save up to 25% on your shopping with prepayment discount, access over a million ebooks, free two-day shipping and free same-day delivery in eligible areas.
Amazon kept the original Prime plan at $99 and the price is equivalent to $8.25 per month. That means that those who sign up for Prime annually make some savings over the monthly package.
Prime membership count
Amazon.com, Inc. (NASDAQ:AMZN) doesn’t disclose the exact number of its Prime members. But third-party surveys believe that global Prime membership is currently in the vicinity of 80 million. The U.S. is the largest Prime market with more than 64 million of Prime members coming from the U.S. alone.
Prime members are the sales drivers on Amazon.com, Inc. (NASDAQ:AMZN)’s retail site. A recent survey by Cowen showed that at least 53% of all the sales on Amazon come from Prime subscribers.
Free delivery is the selling point
As to what is getting people to sign up for Prime membership, it is said that about 80% of Prime members got into the program because of the free delivery service.
Latest posts by Neha Gupta (see all)
- Is Facebook Inc (NASDAQ:FB) Winning Or Losing In Virtual Reality Space? - May 27, 2016 07:35 AM PST
- No Growth In Costco Wholesale Corporation (NASDAQ:COST)’s 3Q Comps Explained - May 27, 2016 07:34 AM PST
- How Will International Business Machines Corp. (NYSE:IBM)’s Big Data University Help? - May 27, 2016 07:33 AM PST