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).