Jeff Bezos' cash cow has certainly become a staple of the online marketplace. Amazon's (AMZN) market cap is currently around $1 trillion - one of the highest among the FANG giants (which include Netflix (NFLX) , Alphabet (GOOG) and Facebook (FB) ). And with over 100 million Amazon Prime members around the world, it seems as though Prime is showing no signs of stopping its global takeover. In fact, according to Bloomberg this week, the average Amazon Prime member spends over $1,400 per year.
In 2012, Amazon announced the launch of Vine.com for buying green products, including groceries, household items, and apparel. It is part of Quidsi, the company that Amazon bought in 2010 that also runs the sites Diapers.com (baby), Wag.com (pets), and YoYo.com (toys). Amazon also owns other e-commerce sites like Shopbop.com, Woot.com, and Zappos.com.
Some of this data is also available to big brands or vendors selling on Amazon’s platform through a program called Amazon Retail Analytics Premium. But it is expensive, with vendors paying 1 percent of their wholesale cost of goods sold to Amazon or a minimum of $100,000 to get access to a database that lets them see some, but not all, of the data Amazon has compiled.
That strategy has led to negative cash flow, which management admitted on the Q3 conference call would last for some time to come. And the lukewarm reaction to the Q3 numbers suggests investors may be questioning valuation, even with NFLX off 18% from June highs. All that said, Netflix is on the path to become the world’s new dominant content distributor. And — though it’s cost billions — it appears to have such a lead that even Amazon Prime Video won’t be able to catch up. Investors may be willing to again pay up for that story once market volatility subsides.
Membership Sharing: Two adults living in the same household can create an Amazon Household to share certain Amazon Prime benefits. For more information, go to About Amazon Households. If you have a paid Prime membership under your personal account you can share your shipping benefits with your Amazon Business user account. Go to Amazon Prime and Business Accounts.
On January 24, 2016, Amazon launched a new subscription program aimed at parents called STEM Club, which delivers educational toys to your home for $19.99 per month. And by "STEM", toys will be hand-picked and focused on the area of science, technology, engineering and math. The toys will range from robotics to natural sciences and will include items exclusive to Amazon. STEM toy subscription club is only available in the United States.
A.: Amazon Prime Video is the streaming-video component of Amazon Prime. Like Netflix and Hulu, Amazon Prime offers unlimited streaming of tens of thousands of movies and TV shows. Unlike its two competitors, however, Amazon Prime also allows à la carte rentals and purchases of its content. You can also chose to subscribe to Prime Video only for $8.99/month.
One key finding of our research is that Prime membership is the principal support for Amazon’s apparel expansion, as Prime members show a much higher tendency than the average consumer to buy apparel on the site. As we show below, Prime membership has trended strongly upward in the recent past. The inference must be that further growth in Prime membership will, in the near term at least, be the foundation on which Amazon will build greater share in the apparel category.
Amazon is still by far the biggest cloud computing firm, with its high-margin AWS business jumping 49% to $6.12 billion in the second quarter. Amazon held the top spot in terms of market share at 34%, which came in well-above second-place Microsoft’s (MSFT - Free Report) 14%, IBM’s (IBM - Free Report) 8%, Google’s 6%, and Alibaba’s (BABA - Free Report) 4%, according to Synergy Research Group.
In August 2007, Amazon announced AmazonFresh, a grocery service offering perishable and nonperishable foods. Customers could have orders delivered to their homes at dawn or during a specified daytime window. Delivery was initially restricted to residents of Mercer Island, Washington, and was later expanded to several ZIP codes in Seattle proper. AmazonFresh also operated pick-up locations in the suburbs of Bellevue and Kirkland from summer 2007 through early 2008.