Amazon use Prime to increase you’re spend & supercharge their business…
For £7.99 a month you get:
- Free next day delivery on millions of products
- Stream or download a selection of movies & original TV series
- Exclusive early access to Lightning Deals
- Access to a rotating selection of eBooks, magazines & comics
- Instant access to over two million songs ad-free and on-demand
And do you know why they do it?
Well. UK subscriptions to Prime are now circa 15 million. That’s around £1.4 billion a year. US subscriptions have smashed through 100 million. That’s a mind blowing $15.6 billion a year.
Just in the US & UK. Amazon make an astonishing £14 billion through Prime membership alone. But the revenue Prime produces is not the real reason they do it.
Amazon have had a bunch of very clever people work out. Charging a relatively low subscription fee for Prime services, makes people buy much more stuff from them.
It’s human nature for us to want to get the most value & even though it’s only £7.99 a month, Prime members tend to buy everything they can from Amazon for the free delivery. Even if it costs more than buying it elsewhere.
The difference is huge. Non-members spend on average just £500 a year. Prime members spend £1150 a year. That’s a massive 230% increase. Little wonder Amazon are trying to entice all their customers to sign up to Prime. Is it?
Although clever, their model doesn’t sit right with us. Using a buying habit trick to vastly increase customers spend. But that’s up to Amazon & their Prime membership customer to decide. I suppose.
When we started our home printing subscription service (Infinity). We designed it so everything was included. Not just the printer, unlimited replacement cartridges & guaranteed service. But delivery too.
Yes. That’s right. Our (£11.99) monthly fee includes free replacement cartridge delivery too. There’s no extra £7.99 a month to cover fast delivery. It’s all included in the price for your total peace of mind.
