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:
Google has pushed the service a lot.
- 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.
- 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.
