Report Suggests Amazon Prime is Reaching Saturation Point
For several years now, we’ve heard about the astronomical growth rate of Amazon Prime—the ecommerce giant’s $99 membership program. The revenue from Prime is estimated to be in the range of about $9 billion and has been a boon to Amazon as the company continues to expand its reach and dive into new industries.
But a new report suggests that the company’s ballooning Prime membership growth numbers are finally starting to slow. It’s something that was bound to happen eventually, but it appears to be here quicker than most analysts and perhaps even Amazon expected.
The news comes out of a Morgan Stanley survey of 1,000 U.S. adults that showed 40 percent of Americans were likely to have an Amazon Prime membership, which was virtually unchanged from a year ago. According to Morgan Stanley, though this is just a one-year trend, it could signal that we’ve reached the saturation point for Prime memberships in the U.S.