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11/02/2024 11:41:36 am

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Amazon Adds 10 Million Prime Customers Over Holidays

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(Photo : Reuters) Amazon has added 10 million new Prime subscribers over the holiday season, highlighting the interest in one-day delivery over Christmas.

Amazon's year might have been dismal financially, running at a $544 million operating loss in Q3 2014 and expecting an even largest loss this quarter, but Prime customers in the holiday season have shot up.

The Prime annual subscription offers various services, most importantly free two-day delivery on Amazon warehouse products. Over the holiday season, Amazon welcomed 10 million new Prime customers, most taking the one month free trial.

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In a months time, Amazon may not have 10 million, but it is a good sign a lot of customers are interested in one day delivery. After the free trial ends, customers will automatically be billed for the first year, and Amazon is hoping most will stay on.

Amazon does offer more than just two-day delivery with Prime, adding on things like Kindle Unlimited, Amazon Music and Instant Video. Unlike most subscription services, Amazon receives payment annually, making it a smaller commitment.

Shopping on mobile has also become more prominent in 2014, as Amazon works on making its online shopping experience more refined. Amazon claims 60 percent of sales were done through a mobile or tablet, a huge leap from 2013 numbers.

Amazon hit shipping records on Black Friday and Cyber Monday as well, but its numbers did not beat Chinese site Alibaba on Singles Day.

Sales figures for the Fire Phone and Fire TV were not released, although the latter seems to be doing better than the former, with no big inventory issues plaguing the Fire TV.

Amazon may be happy with the Prime customers, but realistically investors are starting to worry the ecommerce giant will never make a profit. An operating loss of $544 million will not go away without a serious new success.

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