Discussion Board

Capstone I

Week 7


According to Consumer Intelligence Research Partners, the difference in spending between Prime members and regular costumers in Amazon is changing. Prime members buy an average of $1,400 a year worth of stuff on Amazon, but regular customers only spend $600 on the website. Last year, Prime customers spent an average of $1,300 and regular customers spent $700.This membership has created loyal costumers for Amazon, and one of the reasons for this is the free two-day shipping.

On the other hand, Prime's membership growth is slowing down. There are 97 million Prime subscribers only in the United States. This number grew only by 8% during the past twelve months, which is the slowest rate recorded by CIRP since 2012.

Free two-day shipping is not the only thing that Amazon offers. It also offers video and music streaming, and big discounts at Whole Foods. According to a JPMorgan analysis, the service offered by Amazon Prime is worth $785 per year, 6.5 times higher than the actual cost of an annual Prime subscription which is $120.



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