The Main Reason Amazon is Doing Prime Day

Amazonprimeday2016

Quartz on last year’s and this year’s Amazon Prime Day:

US customers purchased 47,000 TVs, 41,000 pairs of Bose headphones, and 12,000 copies of Fifty Shades of Grey Unrated on Blu-ray. (Good job, America.) “We’ll definitely be doing this again,” Greg Greeley, Amazon’s vice president for Prime said at the time.

But another number was much more important than any of those sales statistics: How many people enrolled to try Amazon Prime. While the company never released a specific number, it heralded the inaugural Prime Day as its best-ever for new Prime signups. Over the last year, Amazon added an estimated 19 million US subscribers to its signature membership program, which costs $99 year, according to Consumer Intelligence Research Partners. At the close of the second quarter, more than half of all Amazon shoppers in the US were also thought to be Prime members.

This is an even more important aspect in new markets than in established markets like the U.S. What a (really) big sales event (with all the attention by users and media) can bring for online retailers can be seen in India here:

Amazon Prime is about to launch in India this year. Prime Day next year in India is certainly going to boost Amazon Prime significantly in this potentially important future market for Amazon. (Especially since Indians are comparatively price sensitive.)

No wonder, then, that Amazon is dedicating the whole frontpage to Prime Day in the markets Amazon is doing the event. Significant sales and a bump in Prime memberships and general awareness, what not to love?

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