Has Amazon reached a tipping point?
1 min read

Has Amazon reached a tipping point?

Consumer news has featured some impressive stats for the mega-retailer Amazon (US: AMZN) : More products are shipped using Amazon Prime than using free Super Saver Shipping.

While this may seem insignificant at first glance, the implications are serious. Amazon Prime is a membership service and investors should never underestimate the value of recurring revenue and repeat customers that membership provides.

Not only that, the average purchase made by Amazon Prime members is $49.23, well above the $25 minimum that consumers must spend for Super Saver Shipping. In many cases, this means making a conscious decision to choose Amazon Prime over Super Saver Shipping. In return, consumers are rewarded with streaming videos, which creates competition for them Netflix (US: NFLX) and builds a strong position in the entire Internet industry.

Whether you want to own Amazon itself or one of the companies it sells to, understanding the company and its prospects is essential. That’s why we’ve created a new premium report on Amazon that covers everything investors need to know about the company. Our report will also give you updates on the top news throughout the year, so click here to get started.

Article Has Amazon Reached a Tipping Point? originally appeared on Fool.com.

Austin Smith has no position in the companies mentioned above. The Motley Fool owns shares of Amazon.com and Netflix. The Motley Fool newsletter services recommend Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. We may not all be fools of the same opinion, but we all believe that considering a variety of insights makes us better investors. The Motley Fool has a disclosure policy.

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