The document discusses Amazon's Prime membership program which saw 51% growth in 2015 and now has over 50% of US households as members. It provides benefits like free 2-day shipping and video streaming to encourage membership. Amazon has a wide selection of products both from their own inventory and from over 70,000 third-party sellers. The business model generates revenue from fees from third-party sellers, sales of their own products, and membership fees from Prime. The focus on customer convenience through Prime and innovations like Dash buttons and drone delivery has helped Amazon become a leader in e-commerce.
2. PROBLEM
• You want to order something specific and get it quickly with maximum convenience
3. AMAZON PRIME
• 99/year
• Perks
• Growth of 51% in 2015
– fastest growth outside of US
– >50% of US households are members
4. “ W E W A N T P R I M E T O B E S U C H
A G O O D V A L U E , Y O U ’ D B E
I R R E S P O N S I B L E N O T T O B E A
M E M B E R ” - J E F F B E Z O S
9. BUSINESS MODEL
• Fees on 3rd Party Sellers
– Fixed fees and/or percentage
• Selling own Products
• Prime Membership
10. HISTORY
July 5th 1994
Amazon founded
Amazon.com launched
to sell books
1995
May 15th, 1997
Issued IPO at
$18 a share
1st expansion into
CDs and DVDs
1998
2000
Amazon
Marketplace
launches
AWS launches
2002
2005
Prime
launches in US
2013
Drone
delivery plan
unveiled
2007
Kindle
Launches
2014
Echo launches