Amazon’s Bezos Says Company Topped 100 Million Prime Members
“Amazon’s Bezos Says Company Topped 100 Million Prime Members”: ‘Amazon.com’ Chief Executive Jeff Bezos said the e-commerce giant has surpassed Prime’s 100 million paid subscribers and will continue to invest to meet the “ever-growing” customer expectations.
Bezos noted the milestone in his annual shareholder letter, published on Wednesday. The charter is the founder’s opportunity to underline its long-term strategy for investors, seeking to increase its confidence as it continues to invest in international expansion, building a physical presence and inventing new products such as the Echo and Alexa activated digital assistant by voice.
Prime subscribers pay monthly or yearly fees in exchange for fast delivery of online orders, streaming music and video and free online photo storage. The associations encourage consumers to buy more with Amazon to get the value of their money, similar to warehouse clubs like Costco Wholesale Corp. Amazon has led its associate’s one step further with more digital advantages and sells complements as a more robust music catalog for more monthly fee.
“Amazon’s Bezos Says ”: Amazon kept its Prime subscriber number a well-kept secret, forcing analysts to estimate the value based on buyer searches. Bezos’s comments show that the Seattle-based company is selling Prime subscribers abroad, demonstrating that it can replicate its success in the US overseas, said RJ Hottovy, an analyst at Morningstar Inc. Amazon is losing money on its international expansion, but investors will be patients if the company is gaining Prime subscribers, he said.
“What we are seeing in Europe and other markets is similar to what we saw in the US between 2010 and 2014,” Hottovy said. “People see value in Prime associations in terms of upload speed and content. It is important to investors because member retention rates are up to 90%. “
Bezos cited Amazon’s continued highs in independent surveys, including the American Customer Satisfaction Index, as evidence that the company continues to devise new ways to please customers by giving them new things they did not know they wanted.
“You cannot rest on your laurels in this world,” he wrote. “Customers will not have it.”
The letter praises Amazon’s corporate culture, with Bezos arguing that high standards are “teachable.”
“People are very good at learning high standards simply through exposure,” he said. “High standards are contagious. Bring a new person to a high-standard team and they will adapt quickly. The opposite is also true. If low standards prevail, they too will spread quickly. “
“Amazon’s Bezos Says Company Topped 100 Million Members”: The CEO also said that in 2017 Amazon shipped more than 5 billion items with Prime worldwide and more new members joined Prime than any previous year. He added that 2017 was the best year for hardware sales and that the company will continue to aggressively invest to expand its customer base, brand and infrastructure.
Amazon shares rose about 1.5% on the trading floor after the letter was published.
Bezos’ annual chart is especially important because investors are not attracted to Amazon by its profits. The company’s margins were less than 2 percent since 2011. They are investing in Bezos’s ability to enter new markets and find new revenue sources, which jumped 31 percent last year to $ 178 billion. Amazon shares rose nearly 70 percent last year, nearly five times the gain on the Standard & Poor’s 500 index.
Amazon has a big advantage in cloud computing, a lucrative and fast-growing market. You are building an advertising company to capitalize on your web traffic from consumers. And the company is betting that the voice-activated Alexa platform will become the next wave of people-device interactions, complementing the computer’s mouse and touch-screen interfaces.
The company also faces new threats. Amazon is involved in a costly price war with Walmart, as the two retail giants struggle for $ 800 billion in business. And US President Donald Trump has repeatedly complained that Amazon does not pay its share of taxes, is harming traditional retailers and getting a good deal from the post office – a criticism that can raise Amazon’s delivery costs if it leads to new rates of postal services packages. Bezos did not mention the attacks in his letter, keeping the company quiet about the problems.
To keep investor faith, Bezos always includes his 1997 shareholder letter to remind them of their ability to predict how the Internet would change the nature of their purchases. He also offers anecdotes as he drives into the mail in his Chevy Blazer and dreams of having a forklift one day to remind him how far the company has progressed.
As the richest man in the world, Bezos’ strategy and outlook has developed followers similar to those of Warren Buffett, whose annual investor letters from Berkshire Hathaway Inc. are mandatory readings for anyone who wants to understand Buffett’s economy and investment strategy. Buffett now ranks third in the Bloomberg Billionaires Index, behind Bezos and Microsoft founder Bill Gates.
“Amazon’s Bezos Says 100 Million Prime Members”: In another first, the company released the median annual pay for Amazon workers, in addition to Bezos, which was $ 28,446, reflecting the large number of retail and depot employees in the team. That number was listed on Amazon’s annual proxy statement filed with the US Securities and Exchange Commission on Wednesday. Also included in this document was the compensation of top executives, including Bezos, whose total compensation of $ 1.68 million in 2017 included $ 81,840 in salary and $ 1.6 million in costs of “security arrangements” for the CEO . The ratio between the average number of payments and the total of Bezos was from 1 to 59.