February 8, 2012
Amazon Prime may be poised to redefine consumers' shopping expectations, according to a blogger on MSNBC. Prime, launched in 2005, is a membership program that gives consumers unlimited fast shipping, such as free two-day shipping and one-day shipping for $3.99 per item on all eligible purchases for an annual membership fee of $79.
By 2009, it had 2 million members but by 2011, membership more than doubled to 5 million members.
Prime only represents 4 percent of the company's total customers, is growing at more than 20 percent year over year, and Prime customers spend 130 percent more than regular Amazon customers.
Prime may have some competition. In December, Google announced that it was partnering with other online retailers to offer low-cost next-day delivery.
Read more about online retailing.
