Tuesday, April 26, 2016

Amazon To Win Its Bet On Amazon Prime

Amazon Prime is one of the cornerstone of Amazon's strategy to expand in its retail business. The purpose is simple: propose a membership for people to pay in order to get extra services, especially in terms of fast delivery. I see different benefits looked for by Amazon:
  • To get the delivery paid upfront
  • To have a loyal base of customers to expand their new categories of products.
  • And it will probably help them out with their goal to enter the grocery business with Amazon Fresh.

Google has pushed the service a lot.

  • Publishing specific ads on their websites
  • Having TV commercials in France
  • But also by promoting their special promotional days, the Amazon Prime Day
It seems the strategy is working, as the promotional rate is growing in the US. Today, 38% of penetration is actually a lot, showing that Amazon has really worked well its strategy to grow its data base.