Amazon may have just hit a major roadblock

amazon prime

  • Amazon's Prime membership growth is slowing in the US, according to a survey by Morgan Stanley.
  • This is a signal that Amazon could have hit a wall in its growth in the US, though there is a silver lining.

 

Amazon may not be able to lean on its increasing Prime membership numbers to fuel its insatiable appetite for growth much longer.

Results from a Morgan Stanley survey of 1,000 US adults, sent in a note to investors, showed that 40% of Americans likely have Amazon Prime memberships. That's virtually unchanged from a year ago, signaling we could be at the limit for Prime membership penetration in the US.

There are some silver linings for Amazon. In the survey, 20% of non-Prime members rated their chances of becoming Prime members as "likely," which is the highest Morgan Stanley had seen in two years of surveys. Prime members themselves report being very happy with the service, and a vast majority of those surveyed told Morgan Stanley they're planning on renewing their membership.

Prime membership is also growing faster in other markets than it is in the US, signaling potential in other countries. 

Amazon relies on the $99-a-year Amazon Prime membership to boost growth, as members buy more and more often from Amazon than other customers do. It provides benefits like free two-day shipping regardless of order size, access to Amazon Prime video and Music, Prime Now two-hour delivery, and more.

SEE ALSO: Amazon customers are furious that some holiday orders are delayed — and it reveals a glaring limitation of Prime membership

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Contributer : Tech Insider http://ift.tt/2BnIJvo
Amazon may have just hit a major roadblock Amazon may have just hit a major roadblock Reviewed by mimisabreena on Friday, December 15, 2017 Rating: 5

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