Amazon.com, Inc. (NASDAQ:AMZN) is poised to close 2014 on a high after announcing that holiday sales made via its smartphone app more than doubled heading into 2015. Fox Business’, Adam Shapiro, reports that the giant online store continues to register increased subscription for its Prime subscription service with the addition of 10 million, more users.
Increased usage of Smartphone’s continues to work to Amazon.com, Inc. (NASDAQ:AMZN)’s advantage seen by 60% of the company’s customers carrying out transactions via a mobile app on offer. Amazon Prime offers customers free two-day shipping, inclusive of other perks such as movies and access to a wide array of Kindle book titles as well as unlimited photo storage.
“Amazon.com, Inc. (NASDAQ:AMZN) is setting new records; this time for the 2014 holiday shopping season. The internet retailer says a record 10 million new users signed up to try its prime service. They took advantage of the company massive online and video music libraries as well as free two-days shipping on selected items,” said Mr. Shapiro
The giant online store sales have been uplifted by the Cyber Monday shopping Frenzy, which usually marks the beginning of the holiday shopping frenzy. It is a great achievement for Amazon.com, Inc. (NASDAQ:AMZN) on reaching 10 million users on prime having been struggling yearlong seen by the stock losing more than 24% in value as well as investors raising concerns over declining profit margins.
Increased subscription for Prime service is a positive sign for Amazon.com, Inc. (NASDAQ:AMZN) as it clearly shows that further growth could be achieved going forward. The growth for Prime numbers also heralds new challenges for Amazon.com, Inc. (NASDAQ:AMZN)’s peers who have been competing for market share in the online retail space.
“One possible reason behind the record numbers is the growth of same day shipping. Amazon.com, Inc. (NASDAQ:AMZN) says customers ordered more than 10x as many items with same day delivery compared to last year,” said Mr. Shapiro.
Amazon Prime members will not only affect per unit shipping economics but look set to offer the company a reliable customer base, able to guarantee recurring revenues going forward.
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