Amazon now has more than 150 million Prime members after huge holiday season
Amazon launched its fourth quarter earnings for 2019 in the present day, and the corporate is touting large Prime subscriber numbers as one of many major contributors to a really profitable holiday season. The firm says it now has over 150 million Prime subscribers, and that more folks joined Prime in the course of the fourth quarter of final 12 months than another quarter within the firm’s historical past. Since its final milestone of 100 million subscribers in 2018, more than 50 million folks have joined.
It’s no secret that individuals subscribe to Prime, not less than its month-to-month model as an alternative of its annual one, more in the course of the holiday season than at different instances within the 12 months, to make sure that items arrive for the vacations. But Amazon additionally attributes its notably large swell of recent Prime subscribers to the service’s availability in Brazil as of final September. Also, the corporate notes that it eradicated the fee (initially $14.99 monthly) of Amazon Fresh, its grocery supply service, for Prime subscribers again in October, including one other profit to the subscription on prime of Prime Video and quite a few others.
Last 12 months, we noticed Amazon push to make one-day transport a actuality in a bid to stop you from buying wherever else. The initiative apparently paid off for maintaining Prime subscribers and including new ones. One-day transport comes low cost for customers, however as my colleague Nick Statt shared final 12 months, it doesn’t come low cost for Amazon.
The firm says within the final three months, it earned practically roughly $three.three billion revenue on gross sales of $87.four billion, each of which smashed Wall Street expectations. Not solely was Amazon’s retail division buzzing alongside, however its Amazon Web Services cloud computing division and its fast-growing promoting division each noticed huge income jumps. That all helped Amazon offset its rising transport prices, which jumped to an astronomical $12.9 billion as the corporate continues to construct out its logistics community, but weren’t sufficient of a drag to harm its profitability.