Amazon discontinues the Prime invitee program, a feature that has been in place for some time.
In a move to boost its paid subscriber base, Amazon has announced the end of its "Prime Invitee" program on October 1, 2021. This program, launched in 2009, allowed non-subscribers to enjoy free shipping benefits by being invited by existing Prime members.
For over a decade, Jack Amick, a 33-year-old engineer living in a rural area, has relied on his parents' Prime membership invitation to access free shipping. However, with the end of the program, Amick, like many others, is likely to decline the offer as he doesn't see value in the broader Prime bundle.
Market researchers estimate that tens of millions of people may be using Prime shipping without paying for it. To convert these free users into paying subscribers, Amazon is offering invitees a discounted one-year Prime membership: $14.99 for the first year.
Amazon aims to convert invitees into paying members to "fully capture the value" as it faces the challenge of growing Prime in a saturated U.S. market. This move echoes similar efforts by companies like Netflix to crack down on account sharing.
Amazon's stock ticker symbol is NASDAQ:AMZN. As of now, Consumer Intelligence Research Partners estimates U.S. Prime usage at around 197 million people, while paid memberships likely range between 140 million and 160 million.
With the end of the "Prime Invitee" program, Amazon is taking a step towards monetising its user base more effectively, reflecting its continued focus on growing its subscription business in the face of a saturated market.
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