Amazon Ends Prime Invitee Program, Pushes Paid Memberships
Amazon (AMZN) shares remain resilient despite the company's decision to terminate its Prime Invitee program, a 16-year-old feature allowing free shipping for non-subscribers. The e-commerce giant will sunset the benefit on October 1, redirecting users toward paid Prime memberships.
Existing participants—grandfathered since new enrollments halted in 2015—will lose access to shared shipping perks. Amazon now targets these users with a discounted $14.99 annual Prime offer before reverting to standard monthly pricing. Consumer Intelligence Research Partners estimates U.S. Prime adoption at 197 million, with 140-160 million paid subscribers.
The strategic pivot underscores Prime's centrality to Amazon's revenue model. By funneling users toward Amazon Family and core subscriptions, the firm tightens monetization of its logistics network. Market reaction suggests investors view the MOVE as a net positive for long-term monetization.