Amazon Prime US Sign-Ups Decline Despite Extended Prime Day Sales

Prime Day Performance

• 🎯 Despite Amazon touting record-breaking sales for Prime Day, new US sign-ups fell short of both last year's total and the company's internal targets.
• 📈 Amazon doubled the Prime Day event from two to four days this year, but still saw a 2% decline in new US sign-ups compared to the previous year.

Sign-Up Data and Analysis

• 📊 Internal company data reviewed by Reuters indicates 5.4 million US sign-ups during the 21-day run-up and the 4-day event (July 8th-11th).
• 📉 This figure was approximately 116,000 fewer than the same period last year and 106,000 below Amazon's goal.

Prime Business Overview

• 💡 The data offers a rare look into Amazon's Prime Business, a subscription service providing benefits like fast delivery and streaming content.
• 💰 Amazon's Prime subscription fees have increased over time, with the most recent hike to $139 per year in 2022.
• 🚀 The Prime program is a significant growth driver, generating nearly $24 billion in subscription revenue in the first half of this year.

Amazon's Response

• 💬 Amazon stated that Prime membership continues to show strong growth and customer engagement both in the US and internationally, without providing specific figures.
• 📉 Shares of Amazon were down 3% in midday trading on the day of the report.