CEO Jeff Bezos quantified the size of Amazon's Prime membership for the first time on Wednesday in his annual letter to the Seattle company's shareholders. The new high in subscriptions at Prime, launched 13 year ago, was among milestones from 2017 shared by Bezos in the letter, a copy of which was filed with U.S. securities regulators.
Analysts see Bezos' admission on subscriber numbers as proof that Amazon has been able to sell Prime overseas and replicate the success seen in the US with Prime. We further detail how Amazon's other revenue streams are expected to grow, per Trefis estimates.
The reveal highlights the growth of Amazon's subscription service, which it has pushed for more than a decade to retain customers and, in turn, fuel its core retail business with each purchase. Amazon reported this number for the first time under a new requirement that companies disclose the gap between pay for the rank-and-file and the person in the corner office.
"The high standards our leaders strive for have served us well", Bezos said. The letter also revealed that "Prime Now is available in more than 50 cities worldwide across nine countries".
Amazon shares rose about 1.5 per cent in extended trading after the letter was published.More news: Goldman Sachs delivers impressive Q1 results on robust trading revenue
Bezos added that 2017 was Prime's strongest ever, with members ordering over five billion items worldwide and new members signing up at a higher rate than in any previous year. But it also gets Amazon into trouble with both brands and shoppers over counterfeits and plainly inappropriate products.
Just a reminder that this means half of Amazon's workers make more than $28,446, and half make less.
Amazon Inc started as an electronic commerce company at Seatle, Washington in 1994 primarily for selling books online then diversified to many electronic items for household and other purposes.
"Unrealistic beliefs on scope - often hidden and undiscussed - kill high standards".
Amazon sold "tens of millions" of its Internet-connected Echo speaker; its online streaming music service "Amazon Music" now "has tens of millions of paid customers;" and its "Amazon Fashion" online retail portal now "has become the destination for tens of millions of customers".