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Prime is Amazon's moat though. More than 100 million people subscribe to a service that locks them into choosing Amazon first. People with Prime choose Amazon o
by onion2k 2y ago
Prime is Amazon's moat though. More than 100 million people subscribe to a service that locks them into choosing Amazon first. People with Prime choose Amazon over going to a physical store. It's what took Amazon out of being an e-commerce business and into being a retail business. Don't underestimate how important Prime is to Amazon - it's literally a vendor lock-in that generates billions directly through fees and tens of billions indirectly through additional sales.
- gen220 2y agoIt is until it isn’t. The value of prime has largely being hollowed out and competed away in the last five years, from my perspective as a recently-cancelled Prime member. When the next recession comes, look for the diff in churn rate between Prime and Costco memberships.