PRIMING THE PUMP: THE VALUE OF AMAZON PRIME - New York University
PRIMING THE PUMP: THE VALUE OF AMAZON PRIME
Customers win, but does Amazon?
Amazon Prime: A Customer's Perspective
? Becoming a member: An Amazon Prime membership costs $99/year.
? The Membership Privileges:
? Free shipping on two-day deliveries for items that are classified as prime items.
? Unlimited streaming of movies and TV shows with Prime Video.
? Borrow books from the Kindle Owners' Lending Library
2
The Growth of Amazon Prime
90
80
70
60
50
Amazon Prime was
40
introduced in 2005
30
20
10
0 2009
2010
2011
Number of Prime Members
2012
2013
2014
Number of Prime Members
60% of US households had Prime memberships
2015
2016
2017
3
The Revenue Side
? The Membership Fee: Any one (in the countries where Prime is offered) can become a Prime member, either on a monthly or an annual basis. In the US, in 2017, the annual fee for membership was $99, as it has been for the last few years, and the monthly fee was $10.99. With 85 million members, that translates into a total revenue for the company of over $9 billion, since approximately 20% of Prime members are monthly members.
? The Incremental Sales: The typical Prime member spends approximately $1,300/year on Amazon products, as opposed to the $700 spent by non-Prime members. (But is the incremental sales a Prime effect?)
4
The Cost Side - Shipping
? The Cost of "free" Shipping: The biggest cost, by far, to Amazon is the shipping cost that the company now bears on Prime items.
? In 2016, the company reported net shipping subsidy costs of $7.2 billion (in the footnotes to the 10K)
? Assuming that almost all of these costs were related to servicing the 60 million members that Amazon had in 2016 leads to a per-member shipping cost of close to $120/ member.
5
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- oasis e all items 20200311 centers for medicare medicaid services
- amazon fulfillment in missouri fast facts st peters missouri
- priming the pump the value of amazon prime new york university
- we re here to help seller help item setup content policies
- how to use edi to trade with your amazon b2bgateway
- one of the hottest items in music today
- amazon suspension appeal letter examples
- a comparative analysis of ebay and amazon university of washington
- scan ship tutorial
- hottest items list
Related searches
- the value of university education
- new york university ranking
- new york university transfer
- new york university common app
- new york university medical school
- new york university us news ranking
- new york university graduate school
- new york university transcript
- new york university acceptance rate 2019
- new york university undergraduate admissions
- new york university transcripts request
- new york university transfer admission