Amazon Prime accounts for 50% of e-commerce sales in the US

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Highlights from an interview on CNBC with analyst, Ben Schachter, of Macquarie Capital on bidnessetc.com:

. Amazon sales expected to be $88 billion this year, up 33% from 2014.

. Amazon’s Black Friday 2015 sales accounted for 36% of all online sales.

. The gains are primarily due to Amazon’s Prime service.

. The $99 annual subscription fee is popular because of its 2-day free shipping, but also because it offers access to e-books, cloud storage of videos and photos, and streaming of free music and TV content.

. An analysis from Consumer Intelligence Research Partners estimated there were currently 47 million Prime members. These users spend roughly $1,200 each year, twice what non-Prime customers spend.

. The perks convert 70% of Prime members who use the 30-day trial version into permanent paid subscribers.

. 95% of Prime subscribers who faced service expiry between April and June this year renewed their memberships.

. Almost 25% of all US households today have subscribed to Prime.

. 50% of all American homes will subscribe to Prime by 2020.

. Amazon shares have jumped almost 114% in 2015, but this surge is attributed mostly to the growth of the company’s cloud service, Amazon Web Services (AWS).

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