Amazon Prime Day Becomes Prime Week

By Douglas A. McIntyre Published Jul 8, 6:52AM EDT

Key Points

Prime Day Generate Huge Sales For Amazon
Prime Members Are More Likely To Buy From Amazon Than Non-Prime Members

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Amazon Prime Day Becomes Prime Week — © Amazon Prime Delivery Trucks (CC BY-SA 2.0) by Todd Van Hoosear

“Amazon Turns Prime Day Into Prime Week,” is The Wall Street Journal headline. Amazon (NASDAQ: AMZN | AMZN Price Prediction) has turned its most successful marketing tool into a juggernaut. Why not not make it bigger, and perhaps better. Prime members are more likely to buy items at Amazon than non-Prime members according to a number of sources. Prime Day allows Amazon to balloon Prime member numbers. Today, Prime members total about 220 million.

“Prime Day Starts Now” it says at the top of Amazon.com. Immediately, there is a chance to sign for Prime. Then, there is a very long list of benefits for Prime members which stretches from “50% off” for some items. “Fire TVs with Alexa” are on sale for $69. Alexa is Amazon’s AI home assistant. However, the deal is only available for Prime members.

Prime members also get deals on Prime Video, which is the world’s largest competitor to Netflix (NASDAQ: NFLX). They also get free same day delivery on a number of items.

The base Prime membership annual fee is $139. If people want to sign up and pay monthly, the fee is $14.99. Prime Video is available for $8.99 a month. Amazon Prime Video has less churn than any other video service at 8% a year. Churn rates for competing services run as high as 20% a year. That points to Prime Video’s value.

Capital One Shopping Research reports that last year, Amazon brought in $14.2 billion over a 48 hour period. It is forecast that the four day event will bring in much more this year.

One of Amazon’s most successful businesses is selling advertising on its site. The Journal says over the course of the year, this total is $50 billion. The longer Prime Day period should help that rise.

To give a sense of the effect of Prime Day on Amazon’s revenue, North American revenue was $92 billion in the most recently reported quarter. Prime Day may be Amazon’s single best promotion. And, it just got longer by a factor of 2x.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.