Thursday, April 19, 2018

Amazon Prime Has More Than 100 Million Members

For the first time this week, Amazon disclosed its number of Prime members, which stood at over 100 million people. This is apparently up from tens of millions of people only a few short years ago, and highlights the company's ongoing transformation from an online marketplace to an e-commerce powerhouse that has an endless appetite to invest in new technology.  For now, this shows that Prime continues to be a healthy and growing platform, which has implications both for e-commerce and digital marketing.  For one, the growing power of Amazon is putting pressure on a wide variety of consumer brands as it becomes easier and more affordable for customers to just buy through Amazon. Given its cost structure, Amazon is putting margin pressure on tons of business, making differentiation all the more important to maintain identity and be successful. This can come in the form of digital marketing, but it also needs to be done more effectively at the same or lower cost. Second, the growing popularity of Amazon can perpetuate the trend of search toward their platform and away from Google. Company's like Walmart are revamping their e-commerce websites to try to make themselves more competitive with Amazon. At the end of the day, the Amazon effect continues to be real and impacting a wide universe of companies.

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