Amazon’s Prime membership just hit a new record: 200 million members.
The milestone was shared in a final letter to shareholders by Jeff Bezos, who is stepping down from his long-time role as CEO of the e-commerce giant. Amazon Web Services CEO Andy Jassy will take over as CEO of Amazon. The 200 million membership marks an increase of 50 million since the beginning of 2020, according to Chain Store Age.
“We have 200 million Prime members, for a total in 2020 of $126 billion of value creation,” Bezos wrote in his letter. Nearly 2 million small and medium-sized businesses sell on Amazon, representing roughly 60% of the company’s retail sales.
In addition to confirming the new Prime numbers, Bezos also made note of the recent unionization attempt at an Amazon warehouse in Alabama, which ultimately did not result in a union. The Amazon founder said the company needed to do a better job for its 1.3 million employees, but denied that the company treated its employees like robots without providing bathroom breaks.
“While the voting results were lopsided and our direct relationship with employees is strong, it’s clear to me that we need a better vision for how we create value for employees--a vision for their success,” Bezos wrote.
He continued that Amazon is committed to becoming “Earth’s Best Employer and Earth’s Safest Place to Work.”
Bezos also remarked on what he characterized as Amazon’s benefits over brick-and-mortar stores in his letter, noting how much time customers save when making purchases at the retailer’s website. He touted the cost savings for customers who save time by shopping online versus in-store at roughly $10 per hour. A Prime membership costs $119 per month. At the same time, Amazon has been opening brick-and-mortar
“Customers complete 28% of purchases on Amazon in three minutes or less, and half of all purchases are finished in less than 15 minutes,” he wrote. “Compare that to the typical shopping trip to a physical store--driving, parking, searching store aisles, waiting in the checkout line, finding your car, and driving home. Research suggests the typical physical store trip takes about an hour. If you assume that a typical Amazon purchase takes 15 minutes and that it saves you a couple of trips to a physical store a week, that’s more than 75 hours a year saved.”
See the full story at Chain Store Age.