Amazon on the Defensive: Instead of celebrating it is preparing to absorb a drop in sales

by time news

Chicago Consumer Intelligence Research Partners told Bloomberg Economic News over the weekend that it estimates that as of June 30, 2022, there were 172 million members in Amazon Prime – Amazon’s subscription club, which offers faster and cheaper shipping along with access to the streaming service. This is the same number as the company estimates as of the end of December 2021 – which means that the service has not increased this year, after two years of significant growth during which 60 million households were registered in the United States.

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It should be noted that these numbers do not indicate how many people pay the subscription fee for the service, because the data do not talk about the number of subscribers, but the number of members – when several members (ie households) can settle for a single subscription. The company estimates that the reason for the stagnation is twofold: on the one hand, the exit from the Corona crisis, which brought people back to more shopping in stores and reduced the amount of consumers who see fit to pay for a subscription to purchases through deliveries; On the other hand, inflation, which has raised consumers’ awareness of any unnecessary expense, while the price of a subscription to Amazon Prime rose last February from $ 12.99 to $ 14.99 per month, or for those who pay in advance for an entire year from $ 119 to $ 139.

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