For years, Prime has been an annual subscription program, with a current price of $99 per year.
Meanwhile, Consumer Intelligence Research Partners also estimates that 60 percent of US Amazon customers are Prime members. Netflix has faced a lot of criticism for losing licensing rights to shows like Scrubs, Bob's Burgers, The X-Files, Doctor Who, among others, and they have a much larger inventory than Prime. From the consumer point of view, the new service won't be significantly different to use than Amazon's main site as it will simply serve as a hub for browsing subscription-based products, which should facilitate the process of online shopping, the company said. "While slower growth is expected as it reaches natural limits, Amazon had a surprisingly strong quarter".
For example, Prime members spend an average of $1,300 annually with Amazon, compared to about $700 for non-members, according to CIRP.
Vendors interested in selling through Subscribe with Amazon have access to self-service tools that allow them to create detail pages for their offerings.
That number is up 38% from past year, when the firm estimated that Amazon had 58 million Prime members. But previous year Amazon introduced a monthly subscription plan at a cost of $10.99 as well as a standalone subscription for just its Prime Video service.
That figure represents a membership increase of about 38 percent over a year ago, when CIRP estimated the number of Prime members at 58 million.
Because of that, Wal-Mart (NYSE: WMT), Amazon's closest competitor, dropped its own $50-a-year Prime-like ShippingPass program and now offers free two-day delivery on any qualifying order over $35.
Prime growth may level off and even stop at some point as Amazon saturates the USA market. Of course, $10.99 times 12 equals $133.88, so not paying up front will cost you quite a bit more, but clearly that works for some people. Prime memberships for students runs $49 per year, and comes with a six-month trial.
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