The future of Prime
As Amazon.com, Inc. (NASDAQ:AMZN) continues to build out its infrastructure, Prime members may gain even more perks. With an expanding number of warehouses and distribution centers throughout the United States, domestic Prime members may soon receive free 1-day or even same-day shipping.
The potential for same-day shipping opens up a wealth of opportunities for Amazon and its Prime members, as online purchases would no longer need to be forgone because of time constraints. The first product category that come to mind is groceries. Grocery purchases are still very much dominated by brick-and-mortar stores because many items don’t ship well or aren’t shelf-stable. Amazon already has its foot in the door with its subscribe-and-save delivery program; this is just the next step for it to take.
With nearly 200 million customer accounts, Prime member still represents a small group of Amazon’s client-base. Improving its benefits in shipping, streaming, lending, and other potential Amazon-centric perks will continue to convert regular customers to Prime customers, and drive the operating profits of Amazon higher.
Amazon.com, Inc. (NASDAQ:AMZN) clearly has the capabilities of growing Prime; it’s simply a matter of execution, and there are very few that I’d trust more than Jeff Bezos to execute such a growth plan.
The article Amazon’s Prime Opportunity originally appeared on Fool.com and is written by Adam Levy.
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