Dive Brief:
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Amazon launched its Black Friday Deal store on Monday — three weeks ahead of Black Friday — with a host of specials that are designed to bring in more Prime members.
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The e-retail giant said that it will be offering twice as many limited time specials, which it calls “Lightning Deals,” during the holidays this year and that Prime members will get a half-hour jump on those deals.
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That jump is significant because many Lightning Deals run out swiftly, and is just one of the many perks Amazon is piling up for its Prime members, who pay $99 for free two-day shipping on many items, among other benefits.
Dive Insight:
Amazon has good reason to reward its Prime members — and find ways to gain new ones. Prime members now make up nearly half of Amazon’s U.S. customer base, and they spend $1,200 there each year on average, while non-Prime customers spend $700.
Some number-crunchers say that if membership growth for Amazon Prime continues at its current pace, half of all U.S. households could be Amazon Prime members by 2020.
"Amazon has created a phenomenal moustrap," Rob Garf, a retail strategist with cloud-based e-commerce platform company Demandware, told Retail Dive earlier this year. "Shipping, payment information, past purchases—all personalize the experience. Consumers are more inclined to take advantage of convenience than price. We all talk about customer experience and service, but customers are time starved, they want value and convenience. Amazon and Amazon Prime give shoppers value and convenience.”