🎁 Prime Day Discounts Galore
Amazon Prime Day, scheduled for July 16 and 17, is not just about huge discounts on electronics or fashionable sneakers. The online giant also wants you to sign up for Amazon Prime, priced at $14.99 per month, and its array of additional subscriptions. These offers include three free months of grocery deliveries via Whole Foods and Amazon Fresh for orders over $35 (normally $9.99/month), five free months of Amazon Music Unlimited (usually $9.99/month), three months of Kindle Unlimited (typically $11.99/month), and three free months of Audible Premium Plus (plans start at $7.95/month).
📈 Strategic Expansion of Ecosystem
Jeremy Bartlow, a partner and consumer expert at PA Consulting, describes Prime Day as "an opportunity to allow non-Prime members to peer over the shoulder of their friends and family, see those deals, and wonder if they should sign up." With 75% of US consumers already Prime members, Amazon aims to lure the remaining quarter. Prime Day deals, such as a Ring video doorbell for $50 (down from $100) and a 40-inch Fire TV for $170 (one-third off), are designed to draw in new customers and expand Amazon’s ecosystem.
🛒 Luring Customers with Devices
Amazon’s strategy involves enticing customers with cheap devices to get them into its ecosystem. For instance, the Fire HD 10 tablet is 46% off, down from $139.99 to $74.99. CFO Brian Olsavsky noted, "We don't make money on the device. We make money on the use of the device." This strategy is evident in how Amazon sells its tablets, which have an ad-heavy user interface pushing its digital content, different from other brands.
🏢 Competing with Big Tech and Retailers
Big Tech companies like Apple, Google, and Microsoft have been developing their ecosystems, integrating AI to enhance user experience. Amazon's approach, focusing on Prime Day, contrasts with competitors like Walmart and Target. Walmart's Walmart+ and Target's Circle 360 memberships mirror Amazon's strategy but lack the device integration. For Prime members, Prime Day has become "the new Black Friday," as Bartlow says. Remember, if the free trials don't impress, be sure to cancel them to avoid charges.
Will you sign up for Amazon Prime this Prime Day?
