Friday, July 14, 2017

Over 50% of U.S. Households Expected to Have Prime Membership by Year's End

Amazon Prime is a popular service that allows subscribers to pay a yearly fee in order to get expedited shipping on everything they order. Two years ago, on July 15, 2015, which was the anniversary of the company's founding, CEO Jeff Bezos started something new to further incentivize Prime users: Amazon Prime Day. On Prime Day, subscribers get special deals on select Amazon products. According to the L.A. Times article written by Angel Gonzalez and Ethan Varian, this year's Prime Day (on July 10th), attracted over 60% more shoppers than last year.

Prime Day, which has been compared to Cyber Monday or Black Friday, was designed by Amazon founder and CEO Bezos to be a "holiday" of deals. Not only was it intended to reward current Prime members, but it was also meant to attract new users. Although Amazon has only released the numbers of users that made purchases on Prime Day, it's likely that they gained many more Prime users in the weeks or months leading up to Prime Day. Tens of millions of users made purchases on Prime Day, over 50% more than last year, which brought in over $1 billion in revenue for Amazon over a single 30-hour period.

Analysts have calculated that the number of households in the US with a Prime account has increased 7% over the past year, and they predict that over half of the households in America will have Prime membership by the end of the year. Free shipping and various deals led people to buy some of their favorite new gadgets this year. Over the 30 hour period in 13 countries, Amazon's biggest sellers were their Amazon Echo speaker, Amazon Fire tablets, and Instant Pot programmable pressure cooker. Many other items sold well, but users were really after the deals on personal electronics.

Other retailers tried similar promotions to either compete with or ride the hype of Prime Day. Fry's Electronics offered free same-day delivery on select items and Best Buy had a "Big Deals Day." In the years to come, it is likely that many other businesses will follow suit, offering free shipping at the very least. Some day in the near future, Prime Day may become a holiday in its own right, similar in scope to Cyber Monday or Black Friday. As long as the deals keep coming, customers will keep shopping, so we'll just have to wait and see.

Find out more about us at Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on FacebookTwitterLinkedIn, and Google+.

No comments:

Post a Comment