Amazon's CLV - Pt 5 Amazon expects that each of the new Subprime members will...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
