Analyzing Amazon Prime: A Statistical Case Study of Memberships

This case study delves into the statistics surrounding Amazon Prime, focusing on aspects like membership numbers, subscription models, and consumer spending habits. It highlights that Amazon Prime has over 100 million members, with the majority opting for the annual subscription at $119. The case study also points out that Prime members spend more on Amazon compared to non-Prime members, averaging around $700, and that millennials are the most frequent shoppers. Special discounts are available for students, further driving membership. The analysis uses these statistics to understand the overall impact and trends within Amazon's Prime service. Desklib provides a variety of similar case studies and solved assignments to aid students in their academic pursuits.

Running head: STATISTICS
Statistics
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Answer to Question 1:.....................................................................................................................2
Answer to Question 2:.....................................................................................................................2
References:......................................................................................................................................4

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Answer to Question 1:
The provided case study deals with the incredible facts and statistics about Amazon.
Based on the provided information, significant areas of interest could be observed in the form of
annual subscription service, Amazon Prime Videos, third party seller revenues and memberships.
The annual subscription service set out by the organisation for its customers would cost $119 for
the new customers and at present, it has more than 100 million Amazon Prime members. In
addition, the subscribers of Amazon could enjoy Amazon Prime videos for $119 a year or $12.99
per month. This offer has increased the US subscribers to nearly 80 million, which comprises of
64 % of the US households. This denotes one of the significant parameters of Amazon, as it
denotes a summary number from the overall population (Anderson et al., 2016).
Another parameter that could be observed from the provided case study is the payment of
the prime members for the upcoming years. The members have the option to pay $10.99 per
month; however, majority of the members have opted for the annual membership plan. Out of
the total members, only 26% of the overall members have chosen the monthly payment scheme
of the organisation.
Answer to Question 2:
Various statistics could be observed from the provided case study, out of which the
spending of the Prime members has been more in comparison to the non-Prime members. 1,300
e-commerce members have incurred more amounts on the e-commerce site of Amazon and the
average spending stands at $700. This is chosen as the statistic, as it is a summary number
described in the form of average or percentage describing the sample (Gravetter & Wallnau,

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2016). The millennials shop on Amazon the most, as they are identified as the most frequent
Amazon shoppers and they take benefit of the deals of the Prime day. Based on the study, it has
been found that nearly 79% of the millennials stated that they bought something from the
organisation in the past month.
In addition, the students find discounted memberships from the organisation, as Amazon
has devised a special offer for them. They could avail 50% discount on Prime memberships.
Hence, the students could avail annual subscription of $49 per year for accessing Amazon Prime.
Moreover, they could avail the opportunity of having huge discounts on the textbooks purchased
from Amazon Prime.

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References:
Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J.
(2016). Statistics for business & economics. Nelson Education.
Gravetter, F. J., & Wallnau, L. B. (2016). Statistics for the behavioral sciences. Cengage
Learning.