Amazon has a habit of making a big deal out of certain sales metrics or certain milestones that it reaches. This makes a lot of sense because just like any other big corporation, it has to issue press releases and press announcements to let its massive investment base and let the market know what its up to. This is all part of maintaining its leading position as the 800-pound-gorilla of the online retail space.
One of the most recent sales figures that has made a big deal about is its huge membership growth in Amazon Prime. Amazon Prime is a membership system that gives key benefits to amazon members. It’s like a premium membership to Amazon. You get certain benefits that you don’t normally get with a regular account. One of the biggest benefits is the same day delivery that Amazon offers. You have to remember that this Amazon prime membership number includes first time users. They get a one month free trial and if you’re a student you get a six months free trial. If you are a member of Amazon moms, you get a three-month free trial. And, what are the benefits? You get a one day local express delivery or two day delivery. This is a big deal specially during the Christmas shopping season. People want to get their packages delivered ASAP, specially if they started out shopping late.
According to technology industry observer, Mohammad Saleem, this big surge in Amazon Prime membership is probably a temporary thing. According to him, this is probably due to the fact that people have been procrastinating regarding their shopping this past holiday shopping season. This season is fairly short and a lot of people were caught unaware, so, a lot of people waited to the last hour to do their shopping. As a result, many people took advantage of the Amazon Prime program to expedite the delivery of their shopping. This is a very interesting theory and it does fit in with a lot of the facts on the ground. The shopping season is shorter and people are normally procrastinators, so, it just all added up to a perfect storm that resulted in a nice boost for Amazon Prime. Saleem implies much of this volume is probably not gonna stick around after the trial membership period expires. People just did it to get expedited shipping.
Regardless, it was a very interesting press release from Amazon. After all, the company did reach a massive milestone regarding its stock recently. Amazon is on the move once again.