Amazon uses holiday season to dominate 2017 and beyond
Amazon recruited more shoppers to its Prime program than it has during any other holiday season, helping it achieve a new sales record during the Christmas period, the company said Tuesday.Although a spokeswoman declined to detail how many people tested its subscription service, the online retailer said last season that more than 3 million people signed up during the week before Christmas alone. More than 50 million U.S. households subscribed to Prime as of November, according to the latest estimate by Cowen and Co.
Source: Another sign that Amazon had a blockbuster holiday season
Recurring revenue models are always great as an investor: predictability, low sales transaction fees, customer loyalty, and more. It’s what Apple is trying to accomplish with its Apple Music service and iPhone Upgrade Program, something Wall Street hasn’t exhibited much patience with these days but will literally pay off in the years to come.
For Amazon, the free shipping Amazon Prime service is its trojan horse of sorts as it one-step, one-click checkout and free two-day shipping options make its website the default option when shopping online for most folks. And this Holiday Season, it appears they added something “more than 3 million” new members, each paying $99. Not only is that a nice $300 million in revenue, but also a larger audience for its streaming services and digital downloads, as well as that many more “cards on file” for checkout, especially for their own smart digital assistant Alexa.
It’s why Amazon is the new centerpiece of our Connected Society theme and an emerging player in our Content is King investment theme.
