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How Amazon Prime Is Crushing the Competition
time.com/money ^ | 1-25-2016 | Brad Tuttle

Posted on 01/25/2016 11:59:53 AM PST by Citizen Zed

Here we are at the start of 2016, when Prime membership costs $99 a year, and a new report from Consumer Intelligence Research Partners (CIRP) estimates that there are currently roughly 54 million Amazon Prime members in the U.S. Overall, 47% of the people who shop at Amazon are Prime members, the study says.

For Amazon, the astonishing growth of Prime is a tremendous win-win. Amazon benefits doubly with Prime because 1) it collects annual subscription fees from tens of millions of consumers; and 2) subscribers tend to spend a disproportionately high amount of money with Amazon compared to non-members.

A year ago, a CIRP report estimated that the average Prime member spent $1,500 annually at Amazon, versus $625 for nonmembers. That's a huge gap, giving credence to the theory that perhaps the biggest accomplishment of Prime is that once subscribers are hooked, they more or less stop shopping everywhere else.

(Excerpt) Read more at time.com ...


TOPICS: Chit/Chat
KEYWORDS: amazonprime; applestore; cabletv; dishtv; googleshop; hillaryemailrelease; netflix; walmart
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To: x_plus_one
I need to look into that.
21 posted on 01/25/2016 12:12:09 PM PST by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: Citizen Zed

And if you can prove you are a student, Prime is only $39 annually.


22 posted on 01/25/2016 12:13:13 PM PST by DonkeyBonker (The future does not belong to Hillary)
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To: Blood of Tyrants

Not if you share it with a few family members.


23 posted on 01/25/2016 12:13:37 PM PST by Catphish
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To: Citizen Zed

Forget about the shipping cost, I got more than $99 worth of BOXES last year with prime. One membership is good for 4 people, how could you not do this?


24 posted on 01/25/2016 12:14:36 PM PST by calljack (Sometimes your worst nightmare is just a start.)
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To: itsahoot

Even less if you actually use their prime video. Occasionally I find something there that is not available on NetFlix. “

I like The Blacklist on Amazon Prime. It plays on one of the TV stations but the current episode is on the next day on Prime with no commercials


25 posted on 01/25/2016 12:15:45 PM PST by angry elephant (Endangered species in Seattle)
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To: sparklite2
This article seems to focus on how much more prime members are spending on Amazon, but that's not even the point. EVERYTHING I buy from Amazon is something I would be buying anyway, plus they are really good if something shows up damaged or you order the wrong thing by mistake.
26 posted on 01/25/2016 12:16:25 PM PST by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: beandog

Same here, Bean. Prime orders that span a weekend always take five days. Something changed. Maybe Amazon affiliates don’t honor the two-days order to door promise.

TC


27 posted on 01/25/2016 12:17:04 PM PST by Pentagon Leatherneck
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To: Citizen Zed

Just completely worth it.

Amazon already has good prices, and the hidden benefit of Prime is that if I call them to complain about something they bend over backwards to fix it because they can see what my total spending for the year was. I just have a whole lot more confidence in a web site where they know my business is worth thousands over the years vs. some place where I might spend $100 on a one time basis.


28 posted on 01/25/2016 12:17:06 PM PST by CurlyDave
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To: wagglebee

The older I get, the more I appreciate being able to shop without leaving the house. Not to mention the lessened chance of getting knocked upside the head somewhere. Heh.


29 posted on 01/25/2016 12:20:53 PM PST by sparklite2 ( "The white man is the Jew of Liberal Fascism." -Jonah Goldberg)
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To: Citizen Zed

They are to start collecting sales tax in my state soon. That will damage their competitive advantage for me.


30 posted on 01/25/2016 12:21:14 PM PST by sevlex
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To: Calvin Locke
Yeah, there were problems at Christmas, but I don't think those were Amazon problems. I think those were FedEx/UPS problems. The trucks couldn't move in the weather. It was regrettable.

We use our Prime subscription all the time. Even on everyday items. If I can make a few clicks and save myself a trip to the store on stuff I don't need right this second, I do it.

Now, if only the grocery option was a little better. You can get groceries, but I don't think the same great shipping applies.

Although we do get some specialty items that are non-perishable there.

31 posted on 01/25/2016 12:24:19 PM PST by TontoKowalski (Satisfied Customer #291)
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To: sparklite2
A decade ago I never would have thought I would use Amazon. If I wanted a book or a movie I just went to Barnes & Noble and got it without waiting. There aren't that many movies I want to see anymore and I'm totally sold on Kindle for reading books.
32 posted on 01/25/2016 12:26:42 PM PST by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: wagglebee

I’ve had Kindle for only a couple of weeks and love it. Should have done it long ago. I decided to read Art of the Deal and had it at home in hand moments later. Incredible.


33 posted on 01/25/2016 12:29:43 PM PST by sparklite2 ( "The white man is the Jew of Liberal Fascism." -Jonah Goldberg)
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To: Blood of Tyrants

I spend hundreds of dollars each year at Amazon Prime.

Even if I didn’t spend one thing dime, I still get a huge benefit from streaming TV in the web.

Costs are about the same as Netflix and well worth it.


34 posted on 01/25/2016 12:30:11 PM PST by Responsibility2nd
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To: sparklite2
My wife and I got it four or five years ago, I was skeptical at first, but now we can both read the same book if we want and most older books are cheaper than the paperbacks. If you ever want to read classics (Shakespeare, Mark Twain, etc.) you can get them for free.
35 posted on 01/25/2016 12:32:22 PM PST by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: VanDeKoik

Pricing and selection are tough to beat.


36 posted on 01/25/2016 12:33:21 PM PST by wally_bert (I didn't get where I am today by selling ice cream tasting of bookends, pumice stone & West Germany)
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To: Citizen Zed

subscribers tend to spend a disproportionately high amount of money with Amazon compared to non-members.”

You know, I hadn’t thought about it that way. But really Amazon should be paying US! Because it’s true: you have Prime, that makes it easy, and so with that, I buy TONS of stuff on Amazon.

Running out of deodorant? I buy it on Amazon. Because I can one click it on my computer and don’t have to think about it. No trip to the store, etc.

Incredible, really.


37 posted on 01/25/2016 12:34:02 PM PST by ConservativeDude
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To: Citizen Zed

My wife is pretty much homebound and can order books online, watch movies and shop right from her computer. It’s well worth the cost to me.


38 posted on 01/25/2016 12:34:18 PM PST by McGruff (There's no crying in politics)
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To: Citizen Zed

I use the music and video all the time.

Lots and lots of good albums available for free for streaming over your smart phone.

Video is good, but Amazon’s GUI is still schizophrenic.

Free 2 day shipping, you can upgrade to overnight for $2 per order.


39 posted on 01/25/2016 12:34:37 PM PST by Snickering Hound
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To: TontoKowalski

I have been on Prime since it started.

-Dog Food: Can’t get it cheaper in my local grocery stores. Get two bags at a time, free shipping. yay

-Video: I have found so many BBC shows that i had not seen. Already get my money’s worth there.

-Grocery subscriptions

The dog food free shipping pays for prime in about 4 shipments. I get 8 a year.


40 posted on 01/25/2016 12:39:30 PM PST by couch1971 (The stupid. It Burns.)
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