22 charts that show the incredible growth of Amazon Prime
AP
Amazon Prime is the online retailer's paid membership program that gives people free two-day shipping, free access to a bunch of books, movies and music, as well as unlimited cloud photo storage space.
Prime is an important part of Amazon's business because it helps to create more loyal customers who tend to spend more on its site.
Amazon CEO Jeff Bezos likes to call Prime "an all-you-can-eat, physical-digital hybrid that members love."
These 22 charts will give you a better idea of what Prime is and how the business is doing:
Prime's biggest market is the US. Evercore estimates there are at least 64 million Prime members in the US alone ...
Prime members are driving sales for Amazon. According to a recent Cowen & Co. survey, 53% of all Amazon purchases came from Prime members (an all-time high).
That's why Amazon is doubling down on shipping benefits by expanding same-day delivery. Prime members can get select items delivered within two hours for free, if you live in certain regions. It's now offered in 27 regions in the US, which accounts for more than 1,000 cities nationwide.
But people who haven't signed up for Prime seem to care more about discount offers.
Amazon Prime members also make the most money on average, compared to other online retail customers.
Prime members tend to spend more the longer they use the service, according to Evercore. It's why Amazon wants as many Prime members as possible.
The most popular product category for same-day delivery turns out to be media, according to Cowen & Co. That includes books, music, and video products.
n fact, most people think Netflix and HBO have much better original content than Amazon.
With more original content, Amazon Video's market share will likely improve. And it's already winning accolades: Amazon's original series have earned 120 nominations and won nearly 60 awards, including Golden Globe and Emmy awards.
To save on delivery cost, Amazon is looking into a number of different options, like building its own logistics shipping network. Another idea is to launch Prime Air, a delivery service by an unmanned drone, which would significantly drop the delivery cost per package.
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