Amazon Prime is a significant growth driver for revenue for many years and the annual subscription system not only gives users free two day shipping, but a host of other benefits. In a 10-K filing summarizing performance throughout 2016, Amazon did something that it had never done before, they had a designated a category entitled “retail subscription services” that refers, in part, to Prime.
Amazon generated $6.4 billion in retail subscriptions in 2016 and this is a 43% increase over last year. To put this type of money in prospective, Amazon subscriptions surpassed the total online sales of Macy’s, The Home Depot and Best Buy.
Business Insider cites a report by Morgan Stanley’s analyst Brian Nowak that roughly pegs there to be 65 million Prime members worldwide. Nowak’s estimate assumes both that $88 is the average price paid for Prime, per user, across all markets and that 90% of sales for the respective category result from Prime.
Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CNET, Engadget, Huffington Post and Verge.