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Amazon's CLV - Pt 5 Amazon expects that each of the new Subprime members will remain loyal, repeat customers for at least the 5-year forecast
Amazon's CLV - Pt 5 Amazon expects that each of the new Subprime members will remain loyal, repeat customers for at least the 5-year forecast horizon. They may remain members beyond the initial 5 years, if we impress members with our quality of service. However, to remain conservative, we'll assume all of these subscribers abandon Amazon completely in exchange for Alibaba after 5 years' time. Amazon's typical order is $100, at an average gross margin of 30%. Amazon's CFO expects that sales sourced via Subprime members will have a typical order size of $125 and an average gross margin of 20%. Amazon expects that each new Subprime member will place consistent repeat orders. On average, each subprime member will place 6 orders per year. What are the total \# of transactions expected overall, per year, in total for all subprime members
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