Amazon's Prime numbers

Amazon Prime launched in 2005 with a simple but risky theory: More spending leads to higher shipping volumes, which helps Amazon negotiate with vendors and lower shipping costs. Those savings help pay for Prime and push down prices.

Amazon Prime and income level

Revenue from subscriptions – mostly Amazon Prime memberships – increased 59 percent in the third quarter compared to the same period in 2016, Amazon said last week.

More importantly, a Prime membership is intended to create loyal customers to Amazon's platform which in turn results in consumers spending more money. And it works as on average, a Prime member spends $1,300 a year on Amazon compared to $700 for non-members. This may explain why Amazon is eager to continue adding benefits to a Prime member since the $600 spending difference multiplied by an estimated 90 million Prime users is no doubt a lot of money.

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