Amazon (AMZN) is making Business Prime Duo free for Prime members

Amazon AMZN continues to make efforts to enhance its Prime e-commerce offerings.

This is clearly visible with the latest move that makes Business Prime Duo free for business-minded Prime members. This is expected to be of great help to businesses, especially small ones.

It’s worth noting that Business Prime Duo is an Amazon Business membership that previously cost $69 per year. Allows business customers or those who buy for businesses to access business-only pricing and benefit from free one-day, two-day and free same-day delivery.

What’s more, Amazon Business with Business Prime Duo will help business owners save more and separate personal and business expenses while enjoying Prime entertainment and other benefits.

Additionally, business customers will be able to choose their own Amazon Day to receive orders on the same day every week. They will also be able to take advantage of the consolidated shipping service for eligible large orders.

Amazon.com, Inc. Price and consensus

Amazon.com, Inc. price consensus chart | Amazon.com, Inc. Quote

Go to Benefits

We believe this latest move is likely to help Amazon attract businesses, especially small business owners, to its platform.

This, in turn, will increase the popularity of Prime and Amazon Business memberships.

Notably, the Prime program remains a key catalyst for AMZN’s revenue growth, supported by customer-friendly offers and cash back benefits. Moreover, the strengthening of delivery and shipping services and the expansion of music and video content, as well as a robust loyalty system, continue to grow Amazon Prime’s subscriber base.

All benefits help Amazon provide a better shopping experience for Prime members.

We believe that growing Prime usage will drive the company’s subscription revenue, which has been a key driver of the e-commerce giant for several years.

Amazon reported a 15% increase in subscription service sales, which reached $9.7 billion in the first quarter of 2023.

The growing momentum of subscription services is expected to continue to drive the company’s overall revenue growth.

The Zacks Consensus Estimate is for 2023 revenues of $560.32 billion, reflecting growth of 9% from 2022.

We believe the company’s improving financial performance is likely to make investors optimistic about the stock. Amazon has gained 53.2% since the beginning of the year.

Zacks Rank and Stocks to Consider

Amazon is currently sporting a Zacks Rank #3 (Hold).

Some retail and wholesale companies are better valued TJX companies TJX, Context logic WISH AND Walmart WMT, each carrying a Zacks Rank #2 (Buy). You can see complete list of today’s Zacks #1 ranked stocks here.

Year-to-date, TJX Companies is up 2.4%. DTC stock’s current projected long-term earnings growth rate is 16.74%.

ContextLogic is down 48.6% year over year. WISH stock’s current projected long-term earnings growth rate is 4.4%.

Walmart is up 7.1% year over year. The long-term earnings growth rate for WMT stock is currently projected at 5.5%.

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