In early June, I attended Amazon Prime Analyst Day with my colleague Fiona Swerdlow and a choose group of retail-focused analysts. Amazon now has over 200 million Prime members throughout its 26 international markets. Prime drives greater buy frequency, conversion charges, and lifelong worth. Quick supply, member offers, and a broad portfolio of providers flip Prime right into a day by day utility for members.
So the place is Prime headed for but additional development? Amazon invests in six major retail initiatives to boost Prime’s worth and attain:
- Conversational commerce with Agentic AI. Amazon’s gadgets enterprise — together with Echo sensible audio system, Hearth TV, and Alexa-enabled merchandise — is the gateway to Prime-enabled procuring. Earlier this yr, Amazon launched Alexa+, an AI-powered voice assistant that might be $19.99 monthly however free for Prime members is able to executing duties like managing grocery orders. The 600+ million Alexa-enabled gadgets throughout the globe function agentic AI procuring interfaces, turning each dialog into customized experiences and a possible transaction.
- Healthcare subscription providers. Amazon Pharmacy expands its footprint within the prescription drug market within the US. US Prime members obtain free two-day supply on prescriptions, reductions on generics, and entry to RxPass — a $5/month subscription for 50+ generally prescribed In main US metro areas, Amazon can also be increasing same-day prescription supply, utilizing its logistics community to additional differentiate its healthcare providing.
- Achievement and Prime Advantages Past Amazon.com. Amazon Multi-Channel Achievement (MCF) and Purchase with Prime assist retailers simplify their operations by utilizing Amazon’s success community. It gives Amazon with new income streams by way of success and supply. With adoption from manufacturers like Adidas, Belkin, and Steve Madden, in addition to Shopify and Salesforce Commerce Cloud integrations to automate the order success course of, Purchase with Prime helps manufacturers provide Prime procuring advantages straight on their DTC gross sales channels. Amazon asserts that Purchase with Prime helps DTC retailers entice and convert extra customers, with retailers experiencing a 16% enhance in income per customer and 40% of Prime members indicating they’re extra prone to make a first-time buy from a DTC retailer that options the Prime brand.
- Grocery supply providers. US Prime members get limitless grocery supply on orders over $35 from Amazon Recent, Complete Meals Market, and an array of native grocery retailers on Amazon.com with a $9.99 month-to-month or $99.99 annual grocery supply subscription. Additionally they profit from grocery offers, supply in as quick as 2 hours, and integration with Alexa for voice-enabled procuring. In 2024, Amazon generated over $100 billion in product sales of grocery and family necessities within the US.
- World Identical-Day and Subsequent-Day Supply. Quick, dependable transport stays the guts of Prime’s worth. In 2024, Amazon delivered over 9 billion objects globally both same-day or next-day. Amazon’s regionalization initiatives within the US and the expansion of same-day supply services contributed considerably. Mixed with a $4 billion funding for US rural supply growth, Amazon goals to carry sooner supply in much less densely populated areas.
- Worldwide Growth. Amazon Prime’s international growth technique focuses on delivering a localized providing to drive membership development in rising markets. For instance, the latest Colombia Prime launch bundles free and quick worldwide supply, Prime Video, and native pricing.
Amazon Prime: Key Focus Areas to Drive Buyer Worth and Engagement
Forrester Purchasers: As we highlighted in our US On-line Retail Forecast, 2024 to 2029 and our weblog publish evaluating Amazon and Walmart, by 2029, we challenge that these two firms will account for a mixed $1.5 trillion (or one-fourth) of US whole retail gross sales and $1.1 trillion (or two-thirds) of US on-line retail gross sales.
Forrester continues to intently observe evolving aggressive dynamics by means of our US Retail Competitors Tracker and World On-line Market Tracker. Please schedule a steering session with me to higher perceive the shifts in US client spending and the altering income and profitability shares amongst main retailers. And, don’t miss out on Forrester’s Whole Expertise analysis and my periods on US Financial Traits and Outlook on the CX North America Summit in Nashville, going down this week (June 23-26, 2025).
