Amazon Claims Ten Million New Subscribers Tried Prime This Holiday Season

Jeff bezos

The retail giant has never revealed the exact number of Prime subscribers, except to say it is in the tens of millions. (Image: Amazon CEO Jeff Bezos)

This year proved to be another record shopping holiday period for Amazon which saw lots of online activity. Amazon.com Inc reported that 10 million new members have signed up for the company’s Prime service over the holiday season.

The Prime service, which cost customers an annual membership fee of $99 confers free two-day shipping and streaming on millions of qualifying items including select movies and songs, essential to drive its growth and margins. The two-day shipping was likely the big draw for customers particularly the last-minute shopping sprees that ensured to get to customers and their loved ones right in time for Christmas. Along with that a host of other perks that comes from being a member like Kindle perks such as e-book and video rentals, and even its one-hour delivery service, Amazon Now, which debuted last week in Manhattan, New York.

However, it is still unclear as to how many of the 10 million new members were simply making use of a standing 30-day free trial offer. The retail giant has never revealed the exact number of Prime subscribers, except to say it is in the tens of millions. Analysts believe it is growing at a rapid rate, and each year the company continues to try and come out with some new content.

Earlier, online retailer eBay closed down its Now delivery service and it seems that Amazon has taken over the feature, with the company announcing plans of expanding Amazon Now in other cities next year

Amazon said that consumers ordered more than 10 times as many products through the same-day delivery this holiday season, compared with a year earlier. It did not disclose the figures for Prime Now.

“We are working hard to make Prime even better and expanding the recently launched Prime Now to additional cities in 2015,” CEO Jeff Bezos said in a statement.

Last year, Amazon reported that more than half of its customers were using mobile devices to shop and this holiday season almost 60 percent of the company’s customers went shopping on the retail giant through a mobile device indicating that transactions on mobile devices is becoming the default option. Cyber Monday was again the peak day for mobile shopping on Amazon.

“Mobile continues to accelerate the secular shift from offline to online purchases,” said R.W. Baird analyst Colin Sebastian. “Consumer use-cases for last-minute shopping, in-store purchases and price comparison continue to expand.”

 

Avatar
Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Moderna forecasts $18.4 billion revenue for 2021

Moderna forecasts $18.4 billion revenue for 2021

Moderna Inc., the Boston-based biotech startup, reported its fourth quarter and 2020 fiscal year results, where it announced that it hoped t...
10 hours ago
Hyundai Motor recalls 81,000 EVs for battery defect, may prove to be the costliest recall

Hyundai Motor recalls 81,000 EVs for battery defect, may prove to be the costliest recall

Hyundai Motor says the vehicle recalls are expected to cost the company about 1 trillion won or an estimated $900 million. In South Korea, 2...
11 hours ago
Accor reports $2.5 billion loss, hopeful of a recovery by next year

Accor reports $2.5 billion loss, hopeful of a recovery by next year

Accor, Europe’s largest hotel chain, reported a $2.5 billion net loss in 2020 due to the deterioration in the industry linked to the sprea...
1 day ago
Is the sun shining again on AMC stock?

Is the sun shining again on AMC stock?

As the old adage goes, good things come to those who wait. This might come true for movie theatre operator AMC Entertainment Holdings Inc. w...
1 day ago
HSBC turns to Asia for future growth

HSBC turns to Asia for future growth

The bank’s maximum pre-tax benefits (90%) come from its Asian business. Chairman Mark Tucker and chief executive Noel Quinn are strugg...
2 days ago
Wells Fargo to forego asset management unit to private equity for $2.1 billion

Wells Fargo to forego asset management unit to private equity for $2.1 billion

Wells Fargo has been underperforming for the past few years and has undertaken cost-cutting and restructuring to improve its numbers. Wells ...
2 days ago