How Amazon Dominated E-Commerce During the Pandemic and Its Future Growth Potential Amid Competition

During the pandemic, online shopping has seen a significant increase, and the latest data reveals that Amazon Prime had 180 million members in March. This represents 75% of all US customers, making Amazon an ubiquitous presence in the e-commerce world.

The number of Prime members increased by 8% from 2023 to March, showcasing that there is still growth potential for Amazon. However, the growth rate may be slightly slower due to increased competition from other retailers. While fees for Prime membership cost $15 a month or $140 a year, they remain a key source of revenue for Amazon.

Several other retailers have also introduced their membership services to compete with Amazon’s Prime program. Target recently launched Circle 360, which offers unlimited same-day shipping for $49 a year, while Walmart has been expanding its Walmart+ subscription program for years. Despite these efforts to compete, Amazon remains entrenched in the e-commerce market as items purchased from other websites are often shipped by Amazon itself.

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