Amazon Prime is a subscription service by Amazon available globally, offering users access to benefits such as expedited delivery, streaming entertainment, and grocery delivery. Benefits and delivery speeds vary by location and require a paid membership. As of April 2021, the service boasts 200 million subscribers worldwide.
In 2005, Amazon revolutionized online shopping by introducing Amazon Prime. For an annual fee of $79, members in the contiguous United States enjoyed free two-day shipping on eligible purchases and discounted one-day shipping rates.
On September 7, 2006, Amazon launched its on-demand video service, Amazon Unbox, in the United States, marking its entry into the digital streaming market.
Amazon launched its ad-free music streaming service, Prime Music, in 2007, included with the standard Amazon Prime membership.
In 2007, Amazon Prime took a significant step towards global reach by launching in Germany, Japan, and the United Kingdom, expanding its subscription service to international markets.
On September 4, 2008, Amazon renamed its video service from Amazon Unbox to Amazon Video on Demand. However, the Unbox name remained associated with the local program until August 2014, when it was discontinued for downloading purchased instant videos.
In 2008, Amazon Prime debuted in France under the name "Amazon Premium," offering its subscription services to French customers.
Amazon rebranded its on-demand video service again on February 22, 2011, changing the name from Amazon Video on Demand to Amazon Instant Video as part of its ongoing evolution in the streaming market.
In November 2011, Amazon Prime enhanced its offerings by introducing the Kindle Owners' Lending Library. This feature allowed Prime members to borrow one selected Kindle e-book per month for free, expanding their access to digital content.
Amazon Prime expanded its presence in Europe in 2011 by launching in Italy, providing Italian customers with access to its services.
In 2011, Amazon acquired Lovefilm, a UK-based streaming and DVD rental service, combining it with its existing video offerings to create Prime Video. This strategic move expanded Amazon's footprint in the streaming market and bolstered its content library.
On December 1, 2013, 60 Minutes reported that Amazon was developing a drone delivery service called Amazon Prime Air. Still in its early stages, the service envisioned using drones to deliver small packages under five pounds within a 10–20 km radius from Amazon Fulfillment Centers within 30 minutes. However, the project faced regulatory hurdles, requiring approval from the Federal Aviation Administration (FAA) for the commercial use of unmanned drones in the United States.
In 2013, Amazon Prime extended its services to Canada, offering Canadian customers the benefits of fast shipping and other perks.
In March 2014, Amazon Prime implemented a significant change to its pricing structure, increasing the annual membership fee in the US from $79 to $99. This price hike was accompanied by the launch of Prime Music, a new benefit that provided members with unlimited, ad-free music streaming.
In July 2014, Amazon was revealed to be developing its 8th and 9th drone prototypes for Prime Air. These advanced drones boasted capabilities of flying at 50 miles per hour while carrying 5-pound packages. Amazon had also applied to the FAA for permission to test these prototypes.
In August 2014, Amazon discontinued the option for users to download purchased instant videos through its Unbox local program, marking the end of this feature.
In November 2014, Amazon Prime expanded its services with the addition of Prime Photos. This feature provided members with unlimited storage for their photos on Amazon Drive, enhancing their cloud storage options.
In December 2014, Amazon introduced Prime Now, offering one-hour delivery for a fee or free two-hour delivery to Prime members in parts of Manhattan and New York City. This marked a significant step in Amazon's push for faster delivery times and initially covered 25,000 daily essential products.
In 2014, Amazon's Black Friday sales volume surpassed previous records, indicating significant growth in customer demand.
Following its initial trial, Amazon expanded its Prime Now one-hour delivery service to cover all of Manhattan in February 2015, indicating the success of its fast delivery initiative.
In April 2015, Amazon experimented with innovative delivery solutions by launching a trial partnership with Audi and DHL in Munich, Germany. This initiative aimed to deliver packages directly to the trunks of Audi cars, targeting Audi-connected car users.
In May 2015, Amazon Prime took a significant step towards faster delivery by offering free same-day delivery to its members in 14 US metropolitan areas. This move aimed to further enhance the convenience and speed of online shopping for Prime subscribers.
On July 15, 2015, Amazon launched its first Prime Day to celebrate its 20th anniversary, featuring exclusive sales and promotions for Prime members.
In December 2015, Amazon announced that Amazon Prime had surpassed "tens of millions" of members, showcasing the service's impressive growth and popularity.
In 2015, Amazon launched Amazon Key In-Car, a service that allowed packages to be delivered inside the trunks of compatible vehicles equipped with OnStar (2015+ models) or Volvo on Call. Available in the same areas as Amazon Key's in-home delivery, this service offered a secure alternative for customers concerned about package theft, eliminating the need for additional hardware. Customers received a four-hour delivery window and had to park their vehicles in a publicly accessible area during that time.
In January 2016, Consumer Intelligence Research Partners reported that Amazon Prime's membership base had grown to 54 million, indicating its continued expansion and market dominance.
In March 2016, Amazon Prime expanded its services to Mexico, marking another international launch for the subscription service.
In April 2016, Amazon Prime expanded its same-day delivery service to include additional US cities: Charlotte, Cincinnati, Fresno, Louisville, Milwaukee, Nashville, Central New Jersey, Raleigh, Richmond, Sacramento, Stockton, and Tucson. This brought the total coverage to 27 metropolitan areas.
On July 13, 2016, Amazon reported a 60% increase in global orders placed on Prime Day compared to the previous year.
Amazon Prime expanded its reach in July 2016 by launching in India, offering its services to a new market.
In September 2016, Amazon Prime ventured into the restaurant delivery market by launching a service for Prime members in London, England. The service offered free delivery on all orders over £15.
In September 2016, Twitch, an Amazon subsidiary, unveiled Twitch Prime, offering exclusive features to Amazon Prime subscribers. Benefits included monthly offers on video games, add-on content, and a free monthly subscription to a user's channel.
Starting in October 2016, Amazon Prime members in the US gained access to a rotating selection of Kindle e-books through Prime Reading. This new benefit also included some magazines and travel guides, further enhancing the value proposition of Prime membership. Notably, Prime Reading was separate from Kindle Unlimited, Kindle First, and the Kindle Owners' Lending Library, which were either continued or discontinued.
In December 2016, Amazon Prime introduced greater flexibility to its membership options by offering a monthly subscription fee of $10.99, in addition to its annual plan.
In 2016, "The Grand Tour," a motoring show featuring former "Top Gear" presenters Jeremy Clarkson, Richard Hammond, and James May, premiered on Amazon Prime Video.
By mid-2016, Amazon had significantly expanded its Prime Now service. It became available in parts of Chicago, Miami, Baltimore, Seattle, Dallas, Atlanta, Austin, Nashville, Portland, San Antonio, and Tampa in the United States. Internationally, it reached parts of the United Kingdom, Italy, Germany, France, Spain, Japan, and Singapore. This expansion demonstrated the growing demand for rapid delivery services and Amazon's commitment to meeting those needs. Alongside this, Amazon launched Amazon Flex, a platform for independent contractors to provide delivery services and support the on-demand nature of Prime Now.
In June 2017, Amazon Prime introduced Prime Wardrobe, a new service that allowed customers to try on clothes before purchasing them. This "try before you buy" approach offered greater convenience and reduced the risk associated with online apparel shopping.
In October 2017, Amazon introduced Amazon Key, allowing Prime members to receive in-home deliveries by Amazon Flex contractors. This service, initially a trial, aimed to provide a secure way for packages to be delivered inside homes, addressing concerns about theft or missed deliveries.
In February 2018, Amazon Prime raised the price of its monthly membership fee from $10.99 to $12.99.
By April 2018, Amazon Key, the in-home delivery service, had expanded to 37 metro areas in the United States. At this point, the service required customers to have a compatible Kwikset or Yale smart lock and a specific version of Amazon's Cloud Cam for security purposes. This expansion signified a growing acceptance of in-home deliveries and Amazon's confidence in its security measures.
In May 2018, Amazon Prime raised the price of its annual US membership fee from $99 to $119.
Amazon Prime continued its global expansion in June 2018 with the launch of its services in Australia, providing fast shipping and streaming benefits.
In 2018, Amazon hosted a Prime Day concert headlined by Ariana Grande, streamed on Amazon Video and Twitch, as part of the event's pre-event promotions.
In 2018, Prime Day faced protests and calls for boycotts from critics of Amazon's labor practices, urging solidarity with employees and highlighting concerns about the company's policies.
In June 2019, Amazon made a major push for faster shipping by expanding its one-day delivery service with Prime Free One Day. This offered US members access to one-day shipping on over 10 million products without a minimum purchase requirement.
At CES 2019, Amazon announced a partnership with the Chamberlain Group, integrating its Key service with myQ-enabled garage door openers. This partnership expanded Amazon Key's capabilities, allowing for secure package deliveries directly into customers' garages.
In 2019, Amazon held a Prime Day concert on July 10th, ahead of Prime Day, featuring performances by Taylor Swift, Dua Lipa, Becky G, and SZA, streamed exclusively for Prime subscribers.
On March 3, 2020, Amazon announced the installation of "mini-fulfillment centers" in several US cities, including Dallas, Orlando, Philadelphia, and Phoenix. These smaller distribution centers were strategically located to reduce same-day delivery times, further enhancing Amazon's delivery network and speed.
In August 2020, Amazon achieved a significant milestone by securing approval from the Federal Aviation Administration (FAA) for its Prime Air drone delivery operations in the United States. This approval marked a crucial step towards making drone deliveries a reality.
In September 2020, Amazon Prime expanded its reach in Europe by launching its services in Turkey.
In 2020, due to the COVID-19 pandemic, Amazon postponed Prime Day in the US and Canada, rescheduling it to October 13-14.
In 2020, Amazon rebranded Twitch Prime to Amazon Prime Gaming. This rebranding aimed to distinguish the service and offer it as a standalone benefit for Prime members, eliminating the need for a Twitch account previously required for Twitch Prime.
By the end of 2020, Amazon had discontinued its Prime Pantry service in all locations where it was previously available. This service, offering Prime members a convenient way to order everyday grocery items in a single box for a flat delivery fee, saw a decrease in product range over time. After discontinuation, the items were made available for purchase through Amazon's main store.
As of January 2021, Amazon's Prime Air drone delivery service had not yet launched despite receiving FAA approval in August 2020. This indicated ongoing challenges in implementing drone deliveries on a larger scale.
In January 2021, Amazon discontinued the Kindle Owners' Lending Library.
In April 2021, Amazon announced a significant milestone: Amazon Prime surpassed 200 million subscribers worldwide.
In May 2021, Amazon announced the indefinite postponement of Prime Day in Canada due to ongoing concerns related to the COVID-19 pandemic.
Amazon Prime further expanded its presence in Europe with the launch of its services in Sweden in September 2021.
By October 2021, Amazon Prime expanded its availability to 27 countries, including Austria, Australia, Belgium, Brazil, Canada, China, France, Germany, India, Ireland, Italy, Japan, Luxembourg, Mexico, Malaysia, the Netherlands, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, The Philippines, Thailand, Turkey, the UK, and the US.
Continuing its European expansion, Amazon Prime launched in Poland in October 2021, offering its subscription services to a new market.
In February 2022, Amazon announced its first price increase for the annual US Prime membership in nearly four years, raising the fee from $119 to $139. The company attributed the increase to rising labor and shipping costs.
In April 2022, Amazon expanded its Prime offerings with the launch of "Buy with Prime." This new service allowed Prime members to make purchases from participating merchants outside of Amazon.com while enjoying benefits such as fast and free shipping, seamless checkout, and convenient return options.
On June 13, 2022, Amazon revealed plans to commence Prime Air drone deliveries in Lockeford, California. However, the launch date remained uncertain, contingent upon obtaining the necessary permissions from both the FAA and Lockeford officials.
In July 2022, Amazon Prime marked its entry into the Egyptian market, offering its services to a new region.
On August 1, 2022, Amazon Prime expanded its presence in Southeast Asia by becoming available in Indonesia, Thailand, and the Philippines. The company aimed to offer both local and international content to its new subscribers, with a particular focus on Indonesia, the region's largest economy. Users could access Prime Video through the official website and various devices like mobile phones, tablets, and laptops.
In November 2022, Amazon Prime Music underwent a significant update, transitioning to a radio-like model similar to Pandora. This change, part of an effort to rival offerings from Walmart, meant that selecting a song would play something similar rather than the specific track. Users could skip a limited number of songs per hour if they disliked the substitutions.
In January 2023, Amazon launched RXPass, a new prescription drug delivery service for US Amazon Prime members. For a monthly fee of $5, subscribers could access over 60 generic medications. The service launched immediately in most states, excluding those with specific prescription delivery regulations. However, RXPass was not available to beneficiaries of government healthcare programs like Medicare and Medicaid.
In June 2023, the Federal Trade Commission (FTC) filed a lawsuit against Amazon, alleging that the company had engaged in deceptive practices to enroll consumers in its Prime program without their consent. The lawsuit also claimed that Amazon made it intentionally difficult for consumers to cancel their Prime subscriptions, sparking controversy and legal challenges related to the company's subscription model.
As of November 2023, Amazon expanded its payment options for Prime membership fees to include Amazon gift card balances in countries such as Japan, Italy, Spain, Mexico, Canada, France, the UK, the US, Netherlands, Saudi Arabia, Germany, and India (annual plan only, non-auto-renewing).
Prime Day was held on July 11-12 in 2023.
In April 2024, Amazon launched a new grocery delivery service for Prime members and individuals receiving government assistance for food. The service, available in over 3,500 locations, offered deliveries from various stores, including Whole Foods, Amazon Fresh, and other prominent chains. Prime members were charged $9.99 per month for orders $35 and above, while individuals on government assistance paid a reduced fee of $4.99 without needing a Prime membership. This launch followed successful trials in several US cities and came amidst competitors like Target and Walmart expanding their fresh food operations.
In 2024, Prime Day took place on July 16-17 and expanded its reach to include customers in Australia, Austria, Belgium, Brazil, Canada, Egypt, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Turkey, the United Arab Emirates, the U.S., and the UK.