- Amazon‘s latest earnings report shows just how dominant it is online.
- With revenues that beat Wall Street estimates and a dominant holiday performance in 2017, the company has solidified its “iron grip” on online shopping, according to GBH Insights.
- Prime membership has also grown, creating a “consumer fortress” estimated to be 90 million strong.
To say Amazon is doing well would be an understatement.
In its latest earnings report, the company reported $US60.45 billion in revenue, fuelled by a killer fourth quarter. Analysts had been expecting $US59.85 billion in quarterly revenue.
A revised estimate by GBH Insights pegs the company at capturing 47% of all online commerce for the most recent holiday season. In a note to investors, GBH Insights analyst Daniel Ives wrote that this proves that Amazon has an “iron grip” on online spending that will only strengthen as 2018 continues.
That grip is boosted by the “unmatched consumer fortress” Amazon has built with its Prime membership, according to Ives. Amazon does not disclose how many members it has signed up for Prime, but GBH estimates it could be as many as 90 million.
During its earnings call Thursday, Amazon said it would continue to add membership benefits and work on getting Prime to be the rewards program for Whole Foods, which is set to roll out later this year.
“Prime growth remains the key jewel for Amazon going forward as cross-selling around Whole Foods customers and putting up more walls/barriers around its growing Prime customer base is a major ingredient in Amazon’s ability to fend off competition,” Ives wrote in the note.
International membership has been a big factor for Prime. Amazon said in its earnings call that India has shown the fastest first-year adoption rate of all the markets where it has offered Prime so far.