Amazon has over 100 million prime members
In an annual letter to shareholders, Amazon (AMZN) revealed that it has over 100 million Prime members and that it shipped over 5 billion items with Prime in 2017. As mentioned in the previous part, Amazon has been aggressively pushing for an even broader global presence.
Although Amazon hasn’t ever disclosed its exact Prime member count, it said that it had “tens of millions” of Prime members in 2015, according to Recode. Amazon, which launched Prime 13 years ago, has used the service to build a loyal customer base over the years. Prime membership includes perks such as free and two-day shipping, exclusive access to offers, and unlimited access to Prime Video and Prime Music.
How Prime services have been successful
An important driver of the company’s success in e-commerce has been its economy of scale. According to the company, its massive customer base has allowed it to spread fixed costs effectively.
The tech behemoth benefits from Prime members, as they typically spend more on the platform than non-members. Membership, which costs $99 annually in the United States, earned the company $9.7 billion in subscription revenue, which includes Prime membership fees, in 2017. Amazon stock has surged 30.6% in 2018, despite investors’ concerns regarding the impact of increased regulation in the tech sector.