Amazon.com, Inc. (NASDAQ:AMZN)’s Prime subscription rate is becoming a major threat to online retailers like Wal-Mart Stores, Inc. (NYSE:WMT), an article on Forbes reported. Amazon.com, Inc. (NASDAQ:AMZN)’s one hour delivery program is getting huge success because of its efficiency and promising features. The source quoted a latest market survey which recorded the data of around 2 million online e-commerce users. The results show that Amazon.com, Inc. (NASDAQ:AMZN)’s Prime subscribers are happy with the service and only 1% of the current subscribers are likely to switch to other options like Wal-Mart Stores, Inc. (NYSE:WMT).
The survey also noted that Amazon.com, Inc. (NASDAQ:AMZN) customers who don’t have a Prime subscription are more 10 times more likely to switch to Wal-Mart Stores, Inc. (NYSE:WMT). This shows the efficiency and success of Amazon.com, Inc. (NASDAQ:AMZN)’s Prime service, which has around 40 million subscribers in the US. Amazon.com, Inc. (NASDAQ:AMZN) doesn’t reveal the exact detail of its Prime business, but the source said that it is thriving and going profitable.
Amazon.com, Inc. (NASDAQ:AMZN) Prime subscription gives you two free deliveries, music, video streaming, one or two hour delivery for a whole year in just $99. This is a lot better than services offered by Wal-Mart Stores, Inc. (NYSE:WMT). Amazon.com, Inc. (NASDAQ:AMZN) Prime users increased by no less than 300% last year. Also, a study shows that a person who gets a one-year Prime subscription spend and buy more online than a non-Prime user. This gives a huge advantage to Amazon.com, Inc. (NASDAQ:AMZN) over Target and Wal-Mart Stores, Inc. (NYSE:WMT).
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).
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