If you’re like me, Prime Day gets you excited for a good deal. I’ll admit it, I spent a good 20-30 minutes scrolling through the upcoming deals and adding several to my “Watching” list.
If you’re Jeff Bezos, you’re excited that Prime Day is going to increase Amazon’s market share even further…
Here are four ways Amazon is using Prime Day to continue crushing competition:
- Increasing Amazon Prime memberships
The Amazon Prime Platform is the lifeblood of Amazon’s customer loyalty. Do you know anyone who signed up for Amazon Prime, tried it for a year, and decided to cancel their subscription? I don’t. According to Business Insider, Amazon brings in a whopping $6.4 Billion dollars in revenue for Prime Memberships alone. Furthermore, half of those subscribers are spending over $800 per year and 74% of them are shopping at least twice a month. Beyond Prime’s notorious speedy shipping, it is the gateway to many products fueled on the Prime platform, including: Amazon Instant Video, Prime Music, Prime Now (free two-hour shipping), Prime Reading, Prime Photos, Prime Pantry, and many more.
- Testing logistics to prepare for the holiday season
The holiday season is the biggest time of year for Amazon. During the 2016 holidays, they shipped over 1 Billion items. Prime Day allows Amazon to predict demand and test their facilities and logistics. Last year, they offered 1-Day shipping for orders over $35. Last minute shopping anyone? December 23, 2016 happened to be the busiest shopping day of the year.
- Driving third party sellers to the Prime platform
Paying for shipping? On Amazon? And it will take 5-10 business days to arrive? No thank you. Not for Prime Members. I shop with this filter on…
- Teaching customers to use Alexa (more than they already do…)
Alexa is certainly popular for playing music, turning lights on, giving the weather forecast, and answering your Google-able questions. However, many Alexa users have yet to take the plunge on ordering products with Alexa. Prime Day will help change that. Amazon is offering users exclusive deals ONLY when they order products with Alexa. Notice the fine print at the bottom, “Alexa Deals are not available in the Amazon App.”
Amazon undoubtedly has bigger plans for Alexa and this is another way to get customers comfortable incorporating artificial intelligence in their day-to-day lives. Did you know that Amazon released Amazon Connect – a cloud based contact center service? It was a quiet release in the wake of other Amazon news, but one can only imagine how Alexa might replace talking to a contact center agent.
Prime Day is not only $1 Billion in sales revenue – it’s another innovative way Amazon is staying ahead of the competition (and keeping Prime members like me more loyal than ever). A tip of the cap to Amazon, and Happy Prime Day!