Can Amazon Prime Keep Growing Its Membership?
Amazon (NASDAQ: AMZN) Prime's rampant growth has run out of steam. The online retailer's subscription service ended the first half of 2022 with 172 million members in the U.S., the same as six months ago, according to Consumer Intelligence Research Partners. The stagnation follows two years in a row in which the company added 30 million net new members.
Prime membership is extremely important to Amazon, with management calling it one of the company's three pillars. The question for investors is whether the first half of 2022 is merely a setback or the start of much slower growth for Amazon Prime.
The pandemic fueled a surge in e-commerce sales and a spike in Prime sign-ups as well. Amazon also saw improved retention rates among existing Prime members, which can have a significant impact on net additions when subscriber numbers are so large.
Source Fool.com
