Prime’s approaching a saturation point may be inevitable, but that doesn’t mean that memberships should already be described as “flattening out,” said Charlie O’Shea, lead retail analyst for Moody’s. O’Shea noted that, hypothetically, it’s possible for a company to grow at 10 percent, then slip to 9 percent, and still be adding more members in absolute numbers.
Amazon Web Services offers a broad set of global cloud-based products including compute, storage, databases, analytics, networking, mobile, developer tools, management tools, IoT, security and enterprise applications. These services help organizations move faster, lower IT costs, and scale. AWS is trusted by the largest enterprises and the hottest start-ups to power a wide variety of workloads including: web and mobile applications, game development, data processing and warehousing, storage, archive, and many others.
I started selling furniture on Craigslist 18 months ago. While searching for pieces I actually needed, I began to notice, “Hey, the desk this guy is asking $50 for would totally sell for $150.” Being freshly unemployed, I slid into the furniture flip game, and now I buy lamps off of Amazon and resell them on Craigslist for twice (sometimes five times) as much. Last month, lamps paid my rent. 2018 has become the year of my Lamp Baronry.
Our survey found that membership declines from the April 2018 peak spanned the income scale, although the greatest declines were among consumers in the $35,000–$74,999 income range. This is a demographic that has a near-average Prime penetration rate, meaning that the group does not exhibit the growth potential of lower-income households, which account for a smaller proportion of Prime members. But those in the $35,000–$74,999 income segment also do not have the financial security of those in higher-income households, which account for much higher-than-average subscription rates. So, these data may imply that those in the “squeezed middle” are canceling their Prime memberships at higher rates than those in other income groups, despite an apparently benign economic context.
That said, SHOP stock does have some concerns, and in my opinion it’s not one of the best Amazon-proof stocks to buy on this list. I wrote earlier this month that investors should consider selling SHOP, even though I like the long-term story. Valuation is high, and this market remains uncomfortable in paying up even for high-growth plays. That said, Shopify does have plenty of room for growth, and I don’t expect Amazon to make much of a dent in its market share.
For Amazon, those word searches by consumers allow it to put its private-label products in front of the consumer and make sure they appear quickly. In addition, Amazon has the emails of the consumers who performed searches on its site and can email them directly or use pop-up ads on other websites to direct those consumers back to Amazon’s marketplace.
In March 2014, Amazon announced an increase in the annual membership fee for Amazon Prime, from $79 to $99. Shortly after this change, Amazon announced Prime Music, a service in which members can get unlimited, ad-free streaming of over a million songs and access to curated playlists. In November 2014, Amazon added Prime Photos, which allows unlimited photo storage in the users' Amazon Drive (though only some raw photo files count as photos). Amazon also began offering free same-day delivery to Prime members in 14 United States metropolitan areas in May 2015.