The Rise Of Amazon Prime
When Amazon.com initially opened its market, it focused on undercutting their competitor's prices. Their next move was to grow their Amazon Prime program in an effort to bring all of their customer's online shopping to Amazon.com and to increase the amount they spent online. This strategy has turned Amazon.com into the web retail giant it is today but soon they may be pivoting their focus.
The Quest For New Amazon Prime Members
Amazon.com currently has 65 million Amazon Prime members in the United States according to Consumer Intelligence Research Partners. Amazon Prime customers not only do a majority of their online shopping on Amazon.com but they also spend more on Amazon annually. Not only does prime offer 2-day shipping, but it’s video streaming service that comes along with the membership competes with media-streaming giants like Netflix. Strangely in the month of September, Amazon Prime membership growth took a dip. This may be a one-off occurrence, but it may also be the case that Amazon Prime membership growth is starting to peak. Recently Amazon.com has been reaching out to lower income households for new Amazon Prime members. Overall the household income of the average Amazon shopper has decreased over the past couple years. But Amazon Prime's growth could be near to a cap after they recently changed Prime subscription fee from $99.00 a year to $10.99 a month.
Amazon.com Becomes The World's One-Stop Shop
Amazon.com's next strategic move will be to focus on creating a complete shopping experience for their current members. This means expanding into grocery and other markets not yet dominated by eCommerce. Amazon.com's goal is to become a one-stop shop for its customers and in the near future, it soon could be. Amazon's shoppers are already forming habits encouraged by the convenience of picking up your device and shopping from the comfort of your own home. Amazon.com is constantly reinvesting in its supply chain to support its current and future exponential market growth.
The Next Step For Amazon Prime
With new technologies such as self-driving vehicles and drones, Amazon.com may have even more impressive delivery offerings such as national same day shipping in the near future. For right now one thing is certain, Amazon Prime's 2-day shipping has forever changed consumer expectations for convenience and has created millions of loyal Amazon customers.
Sources: Banjo, Shelly. "How Can Amazon Survive Peak Prime." www.bloomberg.com. N.p., 27 Oct. 2016. Web.