Bloomberg:
As of October, 3 million to 5 million people subscribed to Prime, a program begun in 2005 that provides two-day shipping for $79 a year, said the people, who asked not to be named because the figures are private. Amazon is working to reach 7 million to 10 million in the next 12 to 18 months, the people said. Analysts have pegged the current number at 10 million or more, with expectations for it to climb higher this year.
Prime is a good value for people who order a lot from Amazon because it nets you free shipping; you can easily make money on the cost over the year if you buy enough stuff. It has its limits, however (affiliates who sell through Amazon.com aren’t covered). But with the country still recovering from a devastating recession, are analysts actually that surprised at the low uptick?
Most shipping is free anyway, it just takes longer than 2 days. So the added value for the $80 cost is very little if simply considering that component. And I don’t think most customers are even aware of the streaming or have a device that works with it.
It’s an ok service for the right customers, but it’s not a mass market type of product.
I’ve been using Prime for a few years. Before that I wasn’t convinced it would be worth it because I would just wait and order enough stuff to get the free, slower shipping. But now that I’ve been using it for a while I like it. I can make small orders and get them in two days (or sometimes even the next day) with free shipping. I’ve gotten accustomed to the quick shipping. And some affiliate purchases do get the Prime shipment service. I haven’t used the video streaming because it doesn’t work with the Apple TV.
I tried it for 30 days free when I did my Christmas shopping but eventually had to drop it because their free video streaming is not compatible w/ my TiVo. Not sure if it’s an Amazon or TiVo, or both, problem, but I would imagine that may be keeping others from joining.
I think Amazon Prime is one of the best deals out there. It gets super convenient to order stuff on a whim from the iPhone app, knowing it’s got free 2-day shipping, or for just $4 more, I can order Monday afternoon and have the item Tuesday morning. The Prime videos are a nice touch, but I like the free kindle library that you have access to with a prime account.