Will The Kindle Fire Grow The Amazon Prime Base and Why is That Important
September 30th, 2011 by Skip McGrath
This isn’t my story. This morning, Chris Green of FBA Power, shot me an email alerting me to an article in the Channel Advisor Blog about the release of the Kindle Fire I wrote about yesterday. This article was written a day or so before Amazon’s release, but contains a really interesting analysis of Amazon Prime Membership.
Amazon does not release how many Prime Members there are, but Channel Advisor makes a good case for a conservative number of 10 million. And since everyone who buys a new Kindle Fire will get a free Amazon PrimeMembership, that has the potential to double the number of Prime customers. This is huge news for FBA sellers since all merchandise stored in FBA is available for two-day free shipping for Prime members. Essentially Amazon could double the market for Amazon FBA Sellers
You can –and if you sell on Amazon you should, read the article here.
The potential to make money with the insane demand that will resound to the Kindle Fire is huge. I pre-ordered 5 of them yesterday and if we have a good weekend in sales, I will order another 5 on Monday. If the Kindle Fire is anything like the iPad, early sellers should be able to make up to $200 over retail once the units are back ordered.
The Kindle Fire will be released in November, just before Thanksgiving and you can bet they will be out of stock before Christmas. Laying out around $1000 to buy 5 Kindle Fires is a tough call for a lot of people, but if you can afford it you will make between $750 and $1000 which is a pretty good return on your investment. And the downside risk is virtually nil as even if the insane demand doesn’t materialize. At the very least you can get your money back.