Amazon Prime began in 2005 as a shipping subscription but has evolved into a comprehensive service. It now offers unlimited streaming, same-day delivery, early deals access, and annual cost is $139. Amazon Prime's model is based on recurring revenue, value for members, stickiness through benefits, and scalability. Key to its success has been the value proposition, convenience, customer experience, and marketing. Technology and data-driven decisions have also helped Amazon Prime revolutionize customer expectations around loyalty, convenience, and personalization.

1. Amazon Prime's Subscription-Based Service
Model
How it has evolved from a simple shipping service to a comprehensive subscription model offering various
benefits, and discussed how it has revolutionized customer expectations and loyalty.
Presented by:- Presented To :-
Aditya Singh Dr. Amit Kumar
Aradhya Singh
Minal Singh
Pravin Srivastava
Harsh Vardhan Arora
Sajal Srivastava
1

2. Introduction
• What is Amazon Prime?
A paid subscription service offered by Amazon that provides members with
free two-day shipping on eligible items, as well as other benefits such as free
same-day shipping, unlimited streaming of movies and TV shows, and early
access to Lightning Deals.
2

3. Amazon marketing strategy
Key features of Amazon include:
Editorial and customer reviews;
Manufacturer product information;
Web pages tailored to individual preferences, such as recommendations and notifications; 1-Click®
technology;
Secure payment systems;
Image uploads;
Searching on our websites as well as the Internet; 3

4. 4

5. Scope of Amazon subscription services
 Amazon Prime
Amazon Prime is the company's flagship subscription service. There were more than 150
million Amazon Prime subscribers in 2019. Standard Amazon Prime membership costs $12.99
monthly, or $119 annually.
• Prime Student
Amazon offers a lower-price version of Prime membership for college students. They get the
first six months free, followed by a $6.49 monthly or $59 yearly fee. Prime Student provides
free shipping, discounts on select items such as textbooks, and unlimited Prime movies and
TV shows.
5

6. Scope of Amazon subscription services
 Prime Video
Prime Video is the TV and movie streaming component of Amazon Prime. Prime Video
comes with Amazon original titles as well as access to licensed shows and movies. Users have
the option to pay a monthly fee to add channels, such as HBO, Showtime and Cinemax, to
their Prime Video service. Monthly fees vary by each added channel.
 Amazon Music
Amazon's music subscription service features approximately 60 million songs, as well as
playlists and stations. This is the company's answer to popular music streaming services
Spotify, Apple Music, and Pandora. A standard Amazon Music subscription costs $7.99
monthly for Prime members and $9.99 monthly for non-Prime members.
6

7. Amazon
Prime's
Subscription-
Based Service
Model:
Amazon Prime is a subscription-based service
offered by Amazon that provides members
with free two-day shipping on eligible items,
as well as other benefits such as free same-day
shipping, unlimited streaming of movies and
TV shows, and early access to Lightning
Deals.
Amazon Prime's subscription-based service
model is based on the following principles:
• Recurring revenue:
• Value proposition
• Stickiness:
• Scalability:
7

8. some of the key factors that have
contributed to the success of
Amazon Prime's subscription-
based service model:
• The value proposition:
• The convenience:
• The customer
experience:
• The marketing:
8

9. Evolution of Amazon Prime from a shipping service
to a comprehensive subscription model
• 2005: Amazon Prime is launched in the United States as a paid shipping service that
offers free two-day shipping on eligible items.
• 2007: Amazon Prime expands to Germany, Japan, and the United Kingdom.
• 2011: Amazon Prime adds streaming video service Amazon Instant Video to its lineup
of benefits.
• 2014: Amazon Prime adds free same-day shipping on eligible items in select areas.
• 2017: Amazon Prime adds free one-day shipping on eligible items in select areas.
• 2020: Amazon Prime adds free unlimited photo storage to its lineup of benefits.
• 2022: Amazon Prime raises its annual subscription price from $119 to $139.
: 9

10. Analyze how Amazon Prime has evolved from a simple shipping
service to a comprehensive subscription model offering various
benefits.
• Amazon Prime has evolved significantly since it was first launched in 2005 as a simple shipping
service for books. Here are some of the key ways in which Amazon Prime has evolved:
• Free shipping
• Expanded benefits:
• International expansion:
• Subscription-based model:
• Data-driven personalization:
10

11. Factors that have contributed to the success of Amazon Prime's evolution:
• Customer demand:
• Technology:
• Data-driven decision-making:
• Marketing:
11

12. how it has revolutionized customer expectations and loyalty.
• Free shipping:
• Convenience:
• Value:
• Personalization:
• Customer service:.
12

13. The importance of technology and an increased focus on Artificial
Intelligence and Machine Learning 13

14. Reach
Framework
14

15. Here are some other ways that Amazon Prime has
revolutionized customer expectations and loyalty:
• It has made it more common for businesses to offer subscription services. Before Amazon
Prime, subscription services were not as common. However, the success of Amazon Prime
has shown businesses that subscription services can be a successful way to generate
recurring revenue and build customer loyalty.
• It has raised customer expectations for convenience and value. Amazon Prime has raised
customer expectations for convenience and value. Customers now expect to be able to get
the products they want, when they want them, without having to pay a lot of money.
• It has made it easier for businesses to compete with Amazon. Amazon Prime has made it
easier for businesses to compete with Amazon. By offering a similar service, businesses can
attract customers who are looking for convenience and value.
15

16. Future Innovations
Here are some potential future enhancements that Amazon Prime could consider
implementing:
• Drone Delivery Expansion.
• Virtual Personal Shopper.
• Healthcare and wellness services.
• One day or same day home delivery.
• Prime for business.
• Interactive Content.
16

17. Future Innovations
Here's a breakdown of how Amazon Prime could integrate emerging
technologies like AI, drone delivery, and more personalized experiences:
• Personalized Recommendations.
• Customer Support Automation.
• Real time tracking.
• Location- Based offers.
• Preference Learnings.
17

18. 18