Amazon Prime Penetration Deeper Than Estimated

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Amazon Prime Penetration Deeper Than Estimated

By Patrycja Malinowska - 04/24/2018

Amazon founder and chief executive officer Jeff Bezos' annual shareholder letter revealed that Prime subscriptions go deeper than previously estimated. 

For the first time publicly disclosing penetration figures, Bezos revealed that Prime has more than 100 million members — significantly more than the 50-85 million range analysts had expected.

Other milestones Bezos shared in his letter included:

  • Amazon Web Services, a $20 billion revenue run rate business, announced more than 1,400 significant services and features in 2017, accelerating its pace of innovation especially in new areas such as machine learning and artificial intelligence, Internet of Things, and serverless computing.
  • The number of the units sold on Amazon worldwide from third-party sellers (including small and medium-sized businesses) for the first time has surpassed first-party sales. 
  • There are now more than 30,000 Alexa skills from outside developers, and customers can control more than 4,000 smart home devices from 1,200 unique brands with Alexa.
  • Prime Video continues to drive Prime member adoption and retention, in 2017 adding more Prime Originals, feature films and Prime Channels offerings, as well as debuting NFL Thursday Night Football with more than 18 million total viewers over 11 games.
  • Turning up the dial on fashion in 2017 by introducing the first fashion-oriented Prime benefit, Prime Wardrobe (which is now expanding beyond its initial test phase). That year Amazon also welcomed Nike and UGG, new celebrity collections by Drew Barrymore and Dwyane Wade, dozens of new private brands (like Goodthreads and Core10) and launched an interactive shopping experience with Calvin Klein.
  • Acquiring Whole Foods Market and adding private label products like 365 Everyday Value on amazon.com while adding free two-hour delivery from stores on orders over $35 for Prime members in an expanding selection of cities. Echo and other Amazon devices also are stocked in over a hundred Whole Foods stores, and shoppers can pick up or return Amazon packages at Amazon Lockers in hundreds of Whole Foods locations. "We’ve also begun the technical work needed to recognize Prime members at the point of sale and look forward to offering more Prime benefits to Whole Foods shoppers once that work is completed," Bezos wrote.
  • Amazon Go, a new kind of store with no checkout required, opened to the public in January in Seattle. 
  • Treasure Truck expanded from a single truck in Seattle to a fleet of 35 trucks across 25 U.S. cities (and 12 U.K. cities).

Institute members can view the Amazon Profile for more information on the company.