EBay also hosts a three-week July sales event called "Crash Sales" to compete with Prime Day. Target "Deal Days," Walmart's "Big Sale" and Macy's "Black Friday in July" are all similar sales events launched in the same mid-July timeframe as Prime Day. The success of Prime Day inspired other retailers to host competitive versions of store- and site-wide sales holidays. The event incentivizes people to subscribe to Prime, which in turn draws in more monthly and annual subscription fees. Except, Amazon gets all the revenue on Prime Day. Since the company started Prime Day in 2015, it has become a 48-hour event that results in high sales, similar to what retailers experience on "savings holidays" like Black Friday or Cyber Monday. Walmart+ will offer similar advantages to Prime, such as same day delivery and exclusive product deals, along with other perks like discounts on gas at Walmart gas stations.Īmazon runs an annual Prime Day, where Prime subscribers get better deals and lower prices on select products sold on the commerce platform. Walmart reportedly plans to launch Walmart+, a $98 annual subscription service, in an attempt to compete with Prime. Other large retailers that have watched the success of Prime are following suit with their own subscription services. Amazon Prime includes benefits such as free shipping and same-day delivery. Prime members receive discounts across the company's online retail platforms, brick-and-mortar stores, streaming services and other offerings. Standard Amazon Prime membership costs $12.99 monthly, or $119 annually. There were more than 150 million Amazon Prime subscribers in 2019. Check out this overview of Amazon subscription services, whether you're a potential customer evaluating an offering or a competitor interested in how this part of Amazon's business works.Īmazon Prime is the company's flagship subscription service. Some of these subscription services are additions to the baseline Prime membership, while others are separate from Prime - but they often come at a discounted price for Prime members.Īmazon's array of subscription services sparked competition in various industries and influenced other companies to adopt similar subscription-based business models. Amazon's other subscription services are tailored to specific customer needs, such as family-oriented products and digital streaming content.
Prime, Amazon's main subscription service, provides shipping and delivery benefits and online shopping discounts. The total does not include revenues from AWS, Amazon's cloud platform. Subscription services include monthly and annual Prime fees, as well as audiobook, digital video, digital music, e-book and other subscription services. This was a jump from $14.16 billion in 2018, according to the company's 2019 annual report. Amazon subscription services totaled $19.21 billion in 2019 revenue, which represents 6.8% of the company's total yearly earnings.
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