How does Amazon Prime Make Money?

Amazon is a one-stop destination to buy quality products at pocket-friendly prices. The e-commerce website is offering several excellent features for its customers. It includes free two-day shipping, same-day shipping, early-bird access, quality products, SMS alerts, 100% purchase protection and more. On the other hand, the e-commerce destination has introduced “Amazon Prime” in the year 2006. Amazon prime is more than just an expressive delivery. It’s a paid subscription service that enables customers to access a variety of Amazon perks. It includes same-day delivery, stream videos, exclusive offers, prime day deals and more.

Amazon Prime provides an amazing shopping experience and entertainment. The subscription plan starts at $12.99 per month. According to the analysis, over 150 million subscribers are accessing high-quality videos, tv shows, movies and books through Amazon Prime.

Benefits of Amazon Prime membership

  • Get access to thousands of videos, movies, TV shows and more.
  • Stream Amazon Originals for quality content.
  • More than 2 million songs are available.
  • Ad-free – No commercial advertisements are encouraged between the videos.
  • Thousands of ebooks, comics, audiobooks, magazines, etc.
  • Prime members can get early access to “Kindle” books every month.
  • Play free games through “Twitch”.
  • Scheduled in-home or in-car delivery.
  • Customers can try fashion products before buying.
  • Exclusive Alexa Voice shopping, offers and deals.
  • Additional discounts on grocery shopping and home essentials.
  • Avail 20% instant discount on baby products such as diaper, food and more.

How does Amazon Prime Make Money?

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Amazon Prime Video

It is a popular video streaming platform in the market. Amazon Prime Video was launched in the year 2006. The e-commerce platform is generating great revenue with Amazon Prime Video. The platform is offering below services

  • SVOD – Subscription Video on Demand
  • TVOD – Transaction Video on Demand

SVOD is a traditional subscription service. The subscribers are charged a flat fee to access content available on Amazon Prime Video. They get access to the latest movies, tv shows, Amazon Originals and more. Amazon Prime Video counts on the massive amount of annual Amazon Prime subscribers. Subscribers pay around $119 per year to avail of Amazon Prime. As per the 2019 analysis, Amazon Prime Video had more than 96.5 million viewers and still counting.

Let’s discuss TVOD. Amazon Prime Videos is offering rental services to its subscribers. They can rent their favourite movies or tv shows. Amazon allows its subscribers to stream their favourite content and pay rent for the content outside of their subscription plan through “TVOD”. The e-commerce platform is earning great income through these two services – SVOD and TVOD.

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Amazon Prime Student

Are you a student? Yes!!! Amazon Prime can be extra special for you. Subscribe to Amazon Prime and enjoy benefits of Prime membership and get special student discounts and coupons. Keep note, you need to have a valid .edu email to subscribe to “Prime Student”. Also, you can get 6-month free-trail. After the completion of the free-trial program, you need to pay half price of regular Amazon prime membership. It means students can get a 50% discount on Amazon prime membership. Students can cancel their subscription plan at any time. No questions are asked.

“Amazon Prime Student” is wrapped with several benefits. Therefore, over a million students are subscribing to “Amazon Prime Student” membership. So, Amazon is making money with this subscription plan in no time.

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Amazon Prime Day

Shopping makes people happy!!! People from all age-group are having fun while placing an order with Amazon. People eagerly wait for Amazon Prime Day to fill their carts with favourite products. Amazon offers exciting offers on site-wide products and provides amazing discounts than ever before. This is valid for Amazon Prime members only. Amazon Prime says customer shop 60% more during “Prime Day”. Hence, the e-commerce portal earns excellent profits on Amazon Prime Day.

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Amazon Prime Reading

Reading books improve knowledge, skills and make you smarter. People read a book every day for many reasons – mental stimulation, vocabulary expansion, stress reduction, better writing skills and more. Amazon launched “Prime Reading” in 2016 to help readers across the globe and is making money whenever the user read or download the eBook. Prime members can read their favourite books at no extra cost. Users can access Amazon Prime Reading through Kindle E-reader or Kindle app on their device. Subscribers can feel like their private library and access books, comics, magazines and more. Readers need to pay $9.99 per month to access “Prime Readers”. Over a million subscribers have extensive reading on popular eBooks, comics and more with Amazon Prime membership.

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Amazon Prime Music

Amazon Prime Music Unlimited is an effective music subscription service. Subscribe to Amazon Prime and listen to 60 million songs anywhere at any time on multiple devices. If you’re a Prime member, you can join “Amazon Prime Music Unlimited” for just $7.99 per month. The annual subscription is available at $79. Non-prime users need to pay $9.99 per month. Both prime and non-prime members are subscribing to Amazon Prime Music and generating great income to Amazon.

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Amazon Prime Free Shipping

 People are tired of paying shipping charges. Therefore, Amazon has introduced free shipping for Prime members. Free 2-day and same-day delivery is the major reason why more than 20 million subscribers have an active Amazon Prime membership. The order value should be $35 and above. The shipping address should be valid with eligible zip code.

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Amazon Prime Pantry

Amazon has launched “Prime Pantry” to make people’s life easier. The Prime Pantry is exclusively for prime users. These products are not available for non-prime users. Prime members can buy household, groceries, baby products, health items and more at rocket-bottom prices. Every user needs to pay $4.99 per month for “Amazon Prime Pantry”. Also, Amazon is attracting users with a 30-day free trial of Amazon Prime Pantry. Amazon is earning profits with every subscription.

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In a nutshell,

Amazon Prime is the best option to browse unlimited movies, access favourite tv shows, read books, enjoy free shipping benefits, exclusive coupons and more.  Amazon has over 213 million subscribers every month. According to recent reports, the global revenue of Amazon has crossed 280.5 billion U.S. dollars. Besides, Amazon Prime is making money through subscriptions plan. Users are subscribing to various plans such as video, music, books, pantry and more.
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