Dive Brief:

• Amazon Inc.’s Prime program has “plenty of room to expand” according to a report released Wednesday by investment research firm Baird Equity Research.

• While 10% of Amazon offerings are eligible for Prime treatment — free two-day shipping for $79 a year — analysts at Baird said that more should be. Prime customers also enjoy a free entertainment streaming service on certain titles.

• The key potential for adding to Prime items is found in the retailer’s “Fulfillment by Amazon” services, where other retailers have Amazon process and ship their orders but are not necessarily part of Prime.

Dive Insight:

Baird has leaned on Amazon about this before, last year calling the Prime program a “virtuous cycle” in which membership keeps Prime customers shopping at Amazon, and shopping at Amazon leads customers to join Prime. It stands to reason that if more products are available for free two-day shipping, any increase to the cost of Prime membership, which Amazon said recently is a possibility, might feel more legit to customers. It’s a numbers game for sure, as Amazon has considered an up to $40 annual increase for Prime membership. The retailer would have to figure out how the resulting shipping costs would factor in any expansion. In any case, most Amazon Prime members would probably agree with the investment analysts at Baird — there’s room for more.