After 13 years of its launch, Amazon achieved a milestone by surpassing 100 million users. According to a survey on how much is spent by an average Amazon customer, more than 60% of the Amazon customers in the United States are prime members who spend on an average of around US$ 1,400 on an annual basis as compared to UD$ 600 by non-members. Despite the slow growth of membership, it has continued to grow steadily. Amazon membership is believed to have multiplied in five years. As of December 2018, more than 55% of the prime members were on an annual plan whereas; approximately 35% of the members paid a monthly fee. The rest 10% were in the ‘others’ category.
According to a study on buyers’ shopping patterns on Amazon, more than 60% of them have a Prime subscription.
In a letter issued by Jeff Bezos, an American entrepreneur who is the founder, chairman, chief executive officer and the president of Amazon, disclosed that his company has exceeded 100 million paid Amazon Prime members universally. Amazon witnessed the joining of new Prime members, both in the United States and around the globe and has given an estimation to have shipped more than 5 Billion products with Prime worldwide.
In one of his famous leadership quotes, he said ‘There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second.” He seems to have done it well in accordance with his saying as the monthly subscriptions cost of Amazon Prime (around $13 including both shipping and video streaming services among other overnight shipping services) are cheaper as compared to other entertainment service providers such as HBO ($15/month) and Netflix ($13-$16/month).