In our previous article, we took a look at Amazon’s exponential growth and how we can benefit from the services it offers. This time, we’ll take a look at Amazon Prime, Amazon’s paid service since 2005, which offers additional benefits to its users. It is based on a system of rewarding, which results in loyal customers who keep coming back for more. Consequently, its profit keeps increasing on a completely new level. How exactly did Amazon manage to achieve that?
Benefits, benefits and … benefits!
Amazon’s loyalty program is based on quite a large number of benefits, which are constantly being upgraded and adapted. In order to take advantage of these benefits, Amazon charges merely $120 and in return offers:
Free two-day delivery (sometimes even same-day delivery)
Unlimited use of video content
Free access to music
Free photo storage
“Prime Day”: a special day when Amazon users are given incredible benefits
However, are these benefits enough to tempt people? Apparently, yes. The number of active Amazon Prime users reaches well over 100 million, doubling its numbers in the last three years.
With such a well-thought-out strategy the company has managed to increase its sales, since Prime users spend twice as much on Amazon on a yearly basis when compared with ordinary Amazon shoppers.
Prime Day: exquisite offers for exquisite results
Only a few companies have managed to “assert their own holiday” – and Amazon is one of them. As already mentioned, Prime Day marks the one-day event on Amazon’s shop that is only accessible to Amazon Prime users. Its popularity and efficiency cannot be overlooked; for example, in 2017, the overall sales on that day were 60% higher than the previous year.
Curious about the actual numbers? The most recent data shows 2.4 billion dollars in sales, which is quite impressive, considering this is a one-day event (and on top of everything founded by Amazon itself).
How can you prepare for such an important day if you are among the Amazon providers/sellers?
Use FBA (Fulfillment by Amazon)
Seeing how Prime Day is held exclusively for Prime users, it is very unlikely that its users will buy a product that doesn’t offer Prime delivery – meaning that, in the majority of cases, the products need to be sent to Amazon warehouses.
Optimize your website It is expected that this year 80% of online purchases will be made on mobile phones. The majority of people already check the product’s website in the purchasing process, before deciding on a purchase, so it’s more than important that your website or online shop is mobile friendly.
Advertise on social media Let people know about your special offer, coupons and campaigns on social media and try to reach as many existing and potential Prime users as possible.
Stock up On Prime Day, demand can quickly go through the roof so make sure you’re prepared if that happens. In the event you run out of stock, Amazon may implement certain sanctions on your profile.
Free delivery as the driving force of Amazon Prime
Despite various benefits offered by Amazon Prime, free delivery remains the main reason why people decide on its membership. A research done with Amazon Prime users about what they value the most reveals that 79% of users values free delivery, 11% of them values Prime videos and 4% Prime music.
However, Amazon’s delivery isn’t just “free”. Prime users can receive their order on the very same day, which must be one of the most exclusive offers a retailer can make.
Regardless of how much this free and express delivery may cost Amazon, it definitely pays off. With these kinds of investments, innovations and high standard the company has managed to achieve what it desired most: to bind users in its “retail empire” and thus increase its sales.