We need a new way to compete against Amazon Prime 22. July 2016 Ehsan Samani Observations (0) Let's Face it, Amazon Prime is a great service. It reportedly has nearly 50 million members. According to Amazon an average Prime Member spends around $1200 annually. That is roughly 60 billion dollars of spending on annualized basis that just comes from prime customers. Supposedly Non-Prime customers also spend an average $500 annually. Assuming Amazon Web Services and other devices bring in no more than 20 Billion a year that means Non-Prime members also bring in about 20 billion for amazon every year.Amazon Prime is about more things than just shipping, it also provides streaming services among other things. But Prime Shipping is what people are really interested in. The Data leads us to believe that even large companies can not nearly achieve the same amount of revenue as Amazon. That is, even companies like Walmart, Macy's, Target, Ebay do not have an answer to Amazon Prime. That's because each company by itself can not even possibly exceed that 20 billion number in annual online sales. Thus, They do not have a large enough of customer pool to offer a guaranteed shipping service like Prime with reasonable price tag. But It is more complicated than that; If People were willing to spend $50-$100 on a Shipping Service, They would surely go with Amazon which has good reviews, very good product selection, and reasonable prices. So how are other e-retailers especially the ones with no OmniChannel strategy supposed to compete?Resource pooling is the only answer I can really think of. We need an independent Company, UPS, USPS or Fedex providing a subscription service that provides unlimited shipping for small packages within continental U.S or within Eurozone. But Such a Service needs to be quickly adopted by all the the large retailers to provide a network effect and make sure the risk pool is expanded for the shipper. A Shipping as a Subscription Service is kind of similar to an insurance company, It needs customers who ship a lot, customers who ship a bit and customers who ship say 20 items a year. For such a shipping service to take off all retailers should have to clearly indicate which merchandise (SKU) qualifies for the free shipping service. Once this happens then all the big Retailers sans Amazon can run an Ad Campaign and heavily push such a subscription alternative service to Amazon.