Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Amazon takes bigger share of holiday online retail sales thanks to Prime, says analyst

Prime membership growth has given Amazon's sales a boost in a competitive retail environment, said GBH
Amazon's Echo Dot and Fire TV Stick were top-selling items during the holiday season Inc. (NASDAQ:AMZN) had a 45% to 50% share of all online holiday retail sales this year thanks to its Prime offering, according to GBH Insights head of technology research, Daniel Ives.

That compares to 38% of online retail sales last year with more shoppers using Amazon's one-day delivery service.

READ: says enjoyed strong holiday season, with Prime membership levels rising

E-commerce sales rose about 18% on the previous year, GBH estimates.

Ives also estimates that Prime membership has about 88mln accounts with subscribers spending 22% more this year.

“The ring-fence that Amazon has built around its Prime customer base has significantly benefited the company in a fiercely competitive pricing environment, with much more competitive prices and inventory from Wal-Mart in particular seen over the last month, [and] with Target and Best Buy also holding their own based on our analysis and retail tracking,” the GBH note said.

More than four million people started Prime trials or started paid memberships in one week and the company’s own Echo Dot and Fire TV Stick were the top-selling products across all categories, according to Amazon.

READ: Amazon could face probe by UK advertising watchdog over late delivery complaints

GBH expects the near-term focus for Amazon will be on Echo and Alexa products, the Prime service, the Whole Foods integration, fulfilment investments and the Amazon Web Services (AWS) cloud subsidiary.

Ives expects AWS will wield long-term benefits by driving growth and cash flow, particularly as the company expands globally. He expects significant growth in 2018.

View full AMZN profile View Profile Timeline

Related Articles

H&T Pawnbrokers store
July 02 2018
Last year the company saw gross profits jump 45% thanks to a booming personal loan book and robust sales of luxury second-hand watches and jewellery.
Flying Brands
July 17 2018
“We look forward to the future with confidence and excitement," said Flying Brands boss Trevor Brown.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use