business news in context, analysis with attitude

by Kevin Coupe

In 2016, Amazon Prime and other Amazon subscription services generated $6.4 billion in sales ... up from $4.5 billion in 2015, and $2.8 billion in 2014. While that is just a slice of the company's total retail sales - retail and third part sales combined for more than $110 billion in sales in 2016 - the growth suggests that Amazon is being successful in its efforts to grow Prime and subscriptions as a way of expanding its ecosystem.

Bloomberg writes that this is "the first time ever" that Amazon "has released figures detailing how much money it brings in through its Prime membership program and other subscription services."

The story goes on:

"Assuming around 90 percent of Amazon's subscription revenue comes from the $99 annual membership fee, Morgan Stanley estimates there are about 65 million paying Prime members.

"Net sales from Amazon Prime and other subscriptions are still growing by more than 40 percent annually, a dozen years after Amazon launched the membership program. That's a good sign for Amazon's future prospects, especially considering the majority of Prime members are still in the U.S. And some analysts estimate Prime subscribers buy twice as much on Amazon as people who aren't part of the shopping club."

You can read more about the revelations here. It is an Eye-Opener.
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