Why are e-commerce eager to become members? Take a look at Amazon’s data experience

According to Forbes magazine, Amazon reported fourth-quarter and full-year earnings for 2017 with net sales of $ 179.9 billion in 2017, a 31% increase from 2016’s $ 136 billion and net profit of $ 2.4 billion in 2016 Increase to 3 billion US dollars by 2017. The latest financial results also reflect the fact that as the company’s efforts in international markets, technology, content and marketing are driving up the growth in operating expenses is squeezing margins.

Amazon Amazon Prime is an annual affiliate that includes unlimited free delivery of over 100 million items, unlimited live broadcasts of thousands of movies and TV shows, Alexa Voice Shopping, and unlimited free access to thousands of Kindle books and content. Amazon Prime also includes the same day free shipping for certain products. In addition, Amazon also plans to introduce fine-tuning services later this year that are commonly used in deep learning.

Revenue from online subscription services, such as Amazon Prime members, Audible, Prime Video and Prime Music Unlimited, grew 49% year-over-year and easily exceeded the 20% increase in online store revenue. In January 2018, Amazon raised the monthly fee for Amazon Prime members by $ 2 to $ 12.99 and annual fees totaled $ 156. In addition, Amazon set a $ 99 discount on Amazon Prime members who choose to pay an annual fee. Cowen & Company, an investment company, estimates that Amazon is adding $ 2 a month to bring in about $ 300 million a year in revenue. The following numbers provide insight into the explosive growth of Amazon Prime:

1. By 2018, 51% of U.S. households will become Amazon Amazon Prime members, up from 45% in 2017. Amazon Prime members spend 4.6 times more than non-Prime users. Morgan Stanley, an investment bank in the United States, estimates that for the past 12 months Amazon Prime members spent an average of $ 2,486 instead of Prime members spending an average of just $ 544.

2. According to consumer intelligence research partner Statista, there are currently about 90 million paid Amazon Prime users in the United States. The number of Amazon Prime members in the June 2016 63 million, and by September 2017 has grown to 90 million. From 25 million members in December 2013 to 90 million in September last year, Amazon subscribers in the past 5 years, the annual growth rate of 29.2%. Statista found Amazon Prime members spend an average of $ 1,300 a year, compared to $ 700 a year for non Prime members.

3.70% Americans who earn $ 150,000 or more have Amazon Prime membership. Alexa, Echo, Dash, IoT, Smart Home and Prime Now are the key to attracting and retaining quality customers who have higher disposable income and are willing to pay for their convenience. Amazon recognizes that their most profitable customers are facing constant time constraints due to work and travel plans. The Prime Service Roadmap continues to reflect the propensity to service and speed service to high-income families, many of whom are dual-time workers who are invaluable in their time.

4.46% of Amazon Prime members shop online at least once a week. In contrast, only 13% of non-Prime members shop weekly. Amazon’s surge in services helps retain major customers. On a trusted platform, Amazon combines a broad portfolio of services with real-time convenience, an indispensable way of life for those who have high disposable income and little extra time.

5. Between 2016 and 2018, Prime Prime Amazon for Amazon grew at a CAGR of 56%, up 2 times that of US affiliates while delivering short-term (1 or 2 hours delivery The number of services will increase.

6. By 2022, the United States will have 56 million Amazon Prime video subscribers, reaching 122 million people worldwide. In four years, Amazon Prime video subscribers are expected to grow to 122 million globally, with 45.9% of users coming from the United States.

7. Amazon Prime Video is Amazon’s main catalyst for growth for new users in Japan, Germany and the United Kingdom. Amazon Prime members jumped 16% in Japan in just three months after Prime Instant Video was introduced. With the introduction of Prime Instant Video, prime user subscription rates in the United Kingdom and Germany have also risen.

8.63% of Amazon’s online shoppers are also Amazon Prime members. New primary users from existing online users have started to slow down compared to double-digit growth elsewhere in the Amazon. Amazon’s strategy of expanding its services and equipment foundations, including Alexa, to attract new users has also shown signs in its latest earnings report.

9. Amazon’s Prime membership is 3.4 times more than the Whole Foods Supermarket and is currently changing the pricing and profitability of the food retail. Amazon is using its supply chain, logistics and distribution center to actively readjust the pattern of the food retail industry. Morgan Stanley found that the main reason consumers are not shopping in the grocery stores is lower prices elsewhere. Today, Amazon’s introduction of selective price cuts at Whole Foods is market-driven.

10. Amazon is combining Prime Now’s short-term distribution with the local stockpile of the all-food supermarket to expand its lucrative grocery delivery business. One of the most attractive benefits of Prime members is that Amazon is expanding the profitability of its delivery business by increasing the variety of products Prime Prime can deliver and the flexibility to order short-delivery products.