Amazon.com (AMZN) Looks to Prime for International Growth

Amazon.com (Nasdaq: AMZN) is on watch as the Financial Times speculates that the company's key to international growth may rest solely on its Prime subscription service.

The FT noted that, while U.S. sales have doubled over the past three years, revenue in the U.K. has risen just 40 percent in that time period.

Currently, Amazon offers its Prime membership in the U.S. for an annual fee of $99 and in the U.K. for £79.

While Prime offers things like free shipping, free e-books, and Prime Video/Music in the U.S., the company has moved to bolster its offerings in some of its markets. For example, Amazon offers Prime subs in London free tow-hour grocery delivery from Wm Morrison and two-hour delivery in Milan.

The effort could have a snowball effect; Amazon has noted that Prime subscribers tend to spend twice as much as non-prime members.

With its most recent quarterly report, Amazon said Prime memberships rose 51 percent last year and grew more internationally than in the U.S. However, specific metrics on Prime memberships weren't made available.

Shares of Amazon are indicated for a higher open Friday.

You May Also Be Interested In

• Amazon launches Alexa+ across Canada
• Adobe earnings preview: Mizuho expects solid beat but sees no re-rating catalyst
• William Blair lowers data center index to 75 on power concerns