Thursday, May 3, 2018
Last month, Amazon announced it would be raising the price of Amazon Prime from $99 to $119 and a funny thing happened--absolutely nothing.
Prime, Amazon's subscription and delivery service, has over 100 million members worldwide--a number equivalent to nearly 1/3 the population of the USA. That means a $20 increase in fees may result in about $2 billion in extra revenue for Amazon.
Most Prime members probably couldn't even tell you what they pay annually for the service. They just know they get free shipping, unlimited streaming of video, TV, and music, and the ability to borrow Kindle books. They may also get a Prime Visa card, which provides credits back on purchases at Amazon and Whole Foods. And, of course, first dibs on whatever Amazon decides to add to the program next.
The magic of Amazon is that they have created a program most of us wouldn't think doing without. They've removed as many barriers to online purchase as possible, and they've become so fully integrated into our lives that we don't even ask what it costs.
What kind of service can you offer your customers that makes it so much easier to buy from you they wouldn't ever consider going elsewhere? Amazon didn't start with 100 million Prime members, but they did offer a service that made their customer feel like they really rate.
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