Amazon Prime Lures Customers with New Marketing Strategy

Amazon, one of the leading online retail shops, rolled out a new strategy to boost more sales in their physical stores.

Currently, customers who subscribed to the $99 annual Prime Program will enjoy free shipping, free cloud storage, a variety of other Amazon services and now they are expanding it to ‘offline’ benefit too.

For the past months, cashier staff’s in Amazon physical stores are now asking customers if they are an Amazon Prime Member because members can now purchase books at the same discounted price listed on the website. However, non-members will pay the sticker price.

Amazon store did not attach price tags to their books so customers have to scan the book in the kiosk to see the price. After scanning the book, the kiosk will then show two prices, one for Prime Member and one for non-members.

This new Amazon Program is similar to Barnes & Noble’s $25-a-year membership plan, wherein members get free shipping for online orders and discounts of 10 to 40% off purchases in stores.

Amazon strategic plan

Amazon stores are a great tool for them to test what online strategies and tactics they can try and implement to hike up sales in physical stores. It is also a way to attract more Prime members due to the price differential. Amazon recently brought its online marketing strategy to local stores; they started posting book’s online reviews and star ratings and showcasing products such as the Kindle e-reader.

In a statement released by The Wall Street Journal, CEO Jeff Bezos has said “his company will open more stores in an effort to learn more about how to succeed at offline retailing. Amazon has opened modest-sized bookstores in Seattle, San Diego and Portland with plans to open soon in Chicago and a Boston suburb. The company is also planning to open a chain of small grocery stores.”

Meanwhile, Amazon hasn’t discussed much their ‘fashion products’.

According to Andy Jassy, Amazon Web Services Head said, “So far, we’re really pleased with the early results,”

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