1-Day Shipping Is Driving New Amazon Prime Sign-Ups
Amazon (NASDAQ: AMZN) has found it increasingly difficult to keep adding new Prime members in the United States over the last couple years. There have been several signs that membership is near a saturation point, as more and more trial members opt not to renew the service.
But over the summer, Amazon introduced one-day shipping on millions of items for Prime members, and it's reaccelerated growth across the board. That shows up in the company's financial results, but management likes to keep its Prime membership numbers close to its vest. New estimates from eMarketer, however, suggest one-day shipping is also growing the number of Prime households.
The research group estimates 65.4 million households will have a Prime membership this year. That's up from an estimate of 63.9 million it made in February. That number could accelerate further next year, as most Prime membership trials start at the end of the year in time for holiday shopping.
Source Fool.com
