In a bid to gain further momentum in the kids and students section, Amazon (AMZN - Free Report) has unveiled Prime Book Box. Notably, this is a subscription service which is currently available to the U.S. Prime members.
The service offers a box of children story books selected by the company’s editors and comes with subscription plans ranging from one, two and three months. Moreover, it provides the flexibility of skipping a box anytime.
With the recent launch, the company strives to serve the purpose of “love for reading” for the children till the age of 12 years.
The latest move is in sync with Amazon’s aggressive stance in retail. Notably, the company has already disrupted the retail sector with its robust Prime and vast e-commerce platform.
Coming to the price performance, shares of Amazon have returned 65.3% on a year-to-date basis, outperforming the industry’s rally of 33%.
Prime Book Box to Benefit the Society
We believe this service is extremely important in this day and age when smartphone and internet penetration has glued the children to their virtual screens. So the relevance of this service goes far beyond the children, right up to alleviating the concerns of a parent regarding this growing clout of internet.
The service hopes to inculcate the habit of reading among kids and encourage them to spend more time on books.
Additionally, Amazon provides a mode of saving via this subscription plan. The Prime Book Box is available at $22.99 per box which allows the customers to save up to 35% on the marked price of the books inside.
Consequently, we note that the latest move is likely to attract both parents and children to the platform. Therefore, it is likely to boost the adoption rate of Prime which will further drive the company’s top-line growth.
Growing Focus on Kids & Parents
The aforementioned social benefits are in sync with the company’s growing focus on kids and parents.
The recently launched “Back to School” facility which provides all the necessary as well as fun items required by students in schools with added fast delivery services and Prime benefits.
Further, Amazon rolled out Fire HD 10 Kids Edition that contains new and popular books, cartoon series, comics and games which will entertain the kids. This edition also allows the parents to customize and personalize the settings of the tablet as per the needs of their children.
Apart from these, the company also introduced FreeTime on Alexa, exclusively for kids. Further, Amazon also launched the Echo Dot Kids Edition.
We note that all these endeavors will aid the company in improving market share by serving the new generation of kids well.
Prime: A Key Catalyst
Amazon Prime services are getting enhanced day by day with the help of exciting discounts, expanding free two-hour grocery delivery facilities, fast shipment services, growing movies, audio and video portfolio, Prime Wardrobe and now Prime Book Box.
Recently, Prime members in the United States have started receiving unlimited free two-day shipping on over 100 million different items.
The company also offers 5% cash back benefit to Prime members who use Amazon Prime Rewards Visa card while shopping at any Whole Foods store.
Further, Amazon’s strong efforts to expand its Prime business globally are major positives in driving the membership base of the business. Recently, Amazon rolled out its monthly Prime membership plan in Canada for $7.99 per month.
Additionally, the company launched Prime free same-day delivery in select cities in Italy and Spain; Prime Music and Prime Reading in Italy, Spain, and France and Prime Student in Japan during the second quarter.
Notably, all these endeavours will continue to aid Amazon to improve customer base and encourage Prime membership.
Zacks Rank & Other Stocks to Consider
Currently, Amazon carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader technology sector are Paycom Software (PAYC - Free Report) , Maxim Integrated Products (MXIM - Free Report) and Garmin (GRMN - Free Report) . All the three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Paycom Software, Maxim Integrated Products and Garmin is projected at 24.8%, 10.3% and 7.3%, respectively.
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