Amazon Prime membership increases in profitability, says the company

Amazon.com’s biggest weapon is not the huge stock available online, nor is its Kindle device. It is the company’s Amazon Prime membership that spruce up its ecosystem. The company said Monday in a statement that its Prime Free Two-Day shipping is churning more profits than older Free Super Saver Shipping program.

Though the company did not share specific figure of sales, it mentioned that the two hot products shipped under the membership service are its flagship tablet Kindle Fire and an older e-reader model of Kindle.

Amazon Prime, a service that started in 2005, offers its members two-day free shipping of products regardless of the total amount of purchase for an annual fee of $79. On the other hand, Super Saver offers free shipping on orders that are above $25.

The biggest retailer in the world has added around 14 Million items to stack since Prime service’s launch, totalling 15 million items shipped though the service. In addition, the company has also increased online streaming content from 5,000 titles to roughly 22,000. This content is available for free streaming under Prime Instant Video, a service that is part of Prime membership.

The company stated that the most watched TV show available through Prime Instant Video is “Downtown Abbey Season 1.” The most watched movie is “The Girl With The Dragon Tattoo.” The most borrowed title in the history of the Kindle Owners’ Lending Library is “The Hunger Games.”

“Even seven years later, the price of Prime remains unchanged at $79 a year. Amazon Prime is the best bargain in the history of shopping, and it’s going to keep getting better,” Amazon CEO Jeff Bezos said in a statement.

Though Amazon’s competitors like Barnes & Noble and Google have launched Nook Tablet and Nexus 7 for almost the same price as Kindle Fire, its ecosystem still remains the ace up its sleeve.

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Posted by Usman Khalid on Aug 29 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.