Amazon Prime is a massive feature which has netted the company over 100 million subscribers. Despite this, it may be cutting into the company’s bottom line.
According to Business Insider, there is a large portion of the company’s customer base that uses third-party merchants. This gives Amazon the opportunity to expand in many new ways that offer the company untold potential. There is a catch, however, as free shipping is not always the best way to cut costs.
Amazon is now looking for new ways to balance shipping costs with increased order volumes coming from Prime members. In the end, Amazon Prime has definitely played a key role in expanding the company, even though it turned into a slight liability.
There are currently over 80 million Amazon prime subscribers in the US alone. Membership also doubled from 2016 to 2018.
