Why Amazon is moving to make 1-day Prime shipping the new norm:
and made it easier for sellers to fulfill two-day free shipping, without the need of a membership.
Olsavsky said Thursday that Amazon signed up more Prime members in 2018 than any other year. Consumer Intelligence Research Partners estimated in January that Prime membership—which it said represented 62% of Amazon customers—topped 100 million at the end of last year in the company's top market, the U.S. Last April, CEO Jeff Bezos said Amazon's global Prime membership topped that same milestone, 13 years after the launch.
Q1 sales minus currency impact rose 42% for both the subscription service and AWS, which counts customers including Lyft and Volkswagen. Advertising sales, another key growth focus, rose by more than 36%, Amazon's finance chief said. In comparison, online store sales rose 12%; third-party seller services gained 23%; and sales made in physical stores, primarily Whole Foods, climbed just 1%.
And that's not to mention that, on the profit front, AWS will continue to do the heavy lifting and help fund Amazon's various projects. While representing only 13% of Amazon's total sales, AWS posted a 59% jump in Q1 operating income, to $2.2 billion—half of the company's total.
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