Amazon is the world's leading e commerce business with an annual turnover of over 100 billion USD and its growth is still exponential. At the same time, Amazon is one of the world's leading membership businesses with Amazon Prime. The service is believed to have more than 80 million members worldwide.
Amazon Prime is considered an important part of Amazon's great success. Amazon Prime members pay an annual amount of 99 USD or a monthly amount of 10.99 USD and receive free two-day delivery on over 15 million different items. In addition, Amazon provides various content including data storage, movies and music to its core members.
Amazon Prime Objective
The primary objective of Amazon Prime is to create loyalty between Amazon and its customers. When the customer has paid 99 or 10.99 USD for free delivery, he will wish to get the most from the already paid membership fee. In other words, Prime Members get what we call 'Golden Handcuffs' within the subscription industry; Benefits for customers. As a result, Prime Members spend three times as much money as non-members on Amazon.com in addition to the membership fee.
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Prime is not only critical of Amazon's current business, with one-third of Amazon's business derived from Prime membership. Prime is also an important part of Amazon's strategy for the future that revolves around the complete disintegration of the interaction between e-commerce and retail and the dominance of the same-day distribution market.Amazon has entered the market for groceries in the US, winning a position as a same-day delivery dominator in the market. Amazon Fresh delivers groceries and other goods directly to the customer's doorstep, the day the goods are ordered. Prime also plays an important role here.
A Prime Fresh subscription at an annual amount of 299 USD gives customers free delivery of groceries as they often like Other retail and grocery businesses have much to learn from the success of Amazon's membership. Businesses have the opportunity to tie customers closer to the business through a membership that builds loyalty and makes the customer spend more on your business and less with competitors. It is very likely that we will see substantial use of the membership model within both the retail market and the grocery market - as we have seen it in other industries over the years
Other Prime Service
Amazon Prime Music
Prime Music is Amazon's music streaming service. Here users get access to over one million songs, which can be freely downloaded in the "Prime-Library". Prime users have the opportunity to purchase CDs at a lower price than usual, even though these purchases are rare at these times. Compared to Spotify and other music services, Prime Music's selection is not volatile, as contestants have more than 20 million songs available, but simply that the selection doesn't exist is incredibly important and gives loyal customers their money. Gives good value.
Amazon Mom
Prime has further membership. As a Prime Subscriber, it is possible to subscribe as a parent or a family member and thus save 15-20 percent on diapers and similar products. However, the name has been in the news a bit and has since been changed to the more appropriate "Amazon Family"
Amazon Cloud Drive
Amazon cloud drive is Amazon's "cloud storage"; Amazon's response to Dropbox. Here, users can store files from their computer, so that it is backed up and so that computer memory is not filled.
Amazon Studio
Amazon Studio is an additional step in Amazon's long-term plan to reach as many users as possible. Amazon Studios Amazon has its own film production service and intends to produce both TV series and films.
Amazon Prime Instant Video
The video service competes with some relatively big players, including Netflix, Hulu and HBO. However, there are many indications that Prime Instant Video is a major success, especially in terms of getting users to subscribe to Prime or getting users to keep up with Prime
Amazon Prime Two Day Delivery
It was from here that it started. For six years, Prime was only a two-day delivery service and was a real success for subscribers. It was possible to get free delivery with your purchase if you ordered more than 25 USD and were not a Prime Customer - but as a Prime Customer you could order anything without paying for transportation. Of course, you have indirectly paid for the load - as an annual payment - but in the end most customers have made the most of the savings on free transport or paid in the subscription amount.
Amazon Prime Kindle Service
39 percent of Amazon consumers in the US reportedly own a Kindle reader. Kindle users, who are not necessarily prime subscribers, are often referred to as good subscribers as prime subscribers, as they make more purchases than the "standard" customer. Kindle is the name of Amazon's e-book reader, which gives users the possibility to buy, download and read e-books anytime on their tablet. Kindle also works with Prime Library, which gives Prime customers the possibility to borrow e-books for free from a website or app
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Learning From Amazon Prime
In 26 years, Amazon has managed to grow to be the world's most successful e commerce company with an annual turnover of over USD 130 billion and a market value of around USD 470 billion. Nevertheless, the company still finds itself in the "Day One" in the development of e-commerce, as the vast majority of business between companies and individuals is still physical and psychologically driven by customers into a store or supermarket . This is what Amazon wants to change.
According to Jeff Bezos and Amazon this change will only happen if e-commerce is cheaper, faster and easier for the customer in the future, as the customer has to go to the local store or supermarket. Therefore, the customer, when he is shopping online, must have access to the best and largest selection of items. More importantly, the goods have to be delivered quickly and most often on the same day.
One of the most surprising levers in the making of this change is Amazon turning its customers into customers. The membership model is otherwise not an everyday look in the retail or grocery industry. In fact, it is virtually non-existent, but Amazon has reinforced and revolutionized the concept of membership, and created a very strong formula for customer loyalty with Amazon Prime. In fact, to the extent that it is believed that Amazon has more than 60 million customers worldwide - and is still growing
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Author :- Krishna kumar
July 08, 2020 at 09:11AM
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