retail news in context, analysis with attitude

…with brief, occasional, italicized and sometimes gratuitous commentary…

Seeking Alpha reports that "Amazon's quarterly subscription revenue has reached close to $5 billion.

"The annualized subscription revenue rate should hit $30 billion level by the end of 2020.
Amazon is increasing the value proposition of its Prime membership by giving free AmazonFresh grocery delivery which earlier cost $14.99 per month … As Prime membership base has grown over the past few quarters, several analysts have forecasted a saturation within the subscription segment. However, recent earnings show that this segment is still expanding at a quick pace. The subscription services grew by 35% on a YoY basis with quarterly revenue of $4.95 billion."
KC's View:
Almost everything Amazon does is designed to build the value of its subscription and replenishment services, giving customers more and more reasons to make Amazon the first and often best choice for almost everything. This is not a standard retail battle taking place, and competitors that don't acknowledge that are deluding themselves. If you are a competing retailer, you're not just doing battle on price and availability; you're battling with the mega-ecosystem that is Prime, the efficient and effective replenishment system that is Subscribe & Save, and everything else that Amazon represents.