Amazon Prime is primed for continued growth thanks to a key demographic within its membership ranks.
According to Wolfe Research retail analyst Scott Mushkin, the loyalty program’s prime customer base is comprised of college-educated millennial women, the majority of whom earn over $100,000 a year.
In a research note, Mushkin said the group appears “quite loyal” to the service, and is sure to draw more premium brands to Amazon over time.
The widening assortment of name-brand products, along with a growing roster of Prime benefits, like streaming content and same-day deliveries, will drive greater membership and share-of-wallet, he postulated, leading to Amazon’s increased dominance with the e-commerce channel.
Mushkin’s prime directive: Own the stock.