Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Days in 2015 and 2016 were major successes. The ecommerce giant posted its biggest single sales day ever during its second annual Prime Day event. But it also achieved something else: adding millions of brand new Prime members. Let’s face it: that was always the ultimate goal since last summer.
Amazon.com, Inc. Gains 19 Million New Prime Users
In the U.S., sales orders spiked by more than 50 percent. In the rest of the world, orders went up more than 60 percent in the middle of July. But Amazon may just care about the fact that it added millions of more Prime users.
Consumer Intelligence Research Partners (CIRP) released its second quarter 2106 analysis of buyer shopping patterns for Amazon. The report concluded that Amazon has increased its total U.S. Amazon Prime membership by 19 million since July 2015. This is tremendous news for the website.
According to the report, Amazon has a total of 63 Prime members in the U.S. This is up from 44 million U.S. members since the end of 2015’s second quarter. But this is even bigger news for Amazon: they are spending on average $1,200 per year, which is more than double of what non-members spend.
Researchers say that 52 percent of Amazon’s U.S. customers are Prime members.
Prime’s membership will likely only grow. Amazon Prime is very different than what it was prior to the creation of Prime Day. It now offers a monthly payment option, it has expanded its media selection and it provides a lot more for Amazon device owners.
With Amazon continuing to push the envelope and enhancing the ecosystem, more U.S. consumers will want to hop on the Prime bandwagon. And this news is definitely adding to the Amazon stock.
Year-to-date, Amazon shares are up 15 percent and are approaching the $800 mark.
Amazon.com, Inc.’s Jeff Bezos Cashing in on Success
Amazon CEO and founder Jeff Bezos has decided to cash in on the tech giant’s success on the stock market.
Bezos sold more than one million shares last week, according to a Securities and Exchange Commission (SEC) filing. This resulted in a nice sum of $757 million sitting in his bank account. Reportedly, this is the biggest amount Bezos has received from shares he has sold. The previous record was set in May when he sold roughly 671 million worth of shares.
The Amazon chief was able to benefit from positive stock market reactions and sublime quarterly numbers.
Investors were pleased when the website reported $30.4 billion in revenues, a 31 percent jump from last year. Its profit per share was changed to $1.78, up 19 cents from 2015. The shares rose two percent when the second quarter numbers were posted.
Amazon shareholders have seen the values of their stocks climb 42 percent over the last 12 months.
The tech titan continues to expand. It is hiring more workers, it is building more warehouses, it is launching in foreign countries and it is experimenting with various shipping and delivery options.