How Amazon Prime Revolutionized Shopping

Posted By Airah Lynn Balingit on September 2023

How Amazon Prime Revolutionized Shopping

Amazon Prime is a subscription service that offers customers a range of benefits, such as free and fast shipping, access to video and music streaming, exclusive deals and discounts, and more. But how did Amazon Prime change the way we shop online and offline? Here are some of the ways that Amazon Prime revolutionized shopping.

- It created a loyal customer base. Amazon Prime members tend to spend more and shop more frequently on Amazon than non-members. According to a report by Consumer Intelligence Research Partners, Prime members spend an average of $1,400 per year on Amazon, compared to $600 for non-members. Prime members also account for about 65% of Amazon's total US sales. By offering a bundle of benefits that appeal to different customer segments, Amazon Prime has created a loyal and engaged customer base that drives its growth and profitability.

- It raised customer expectations. Amazon Prime set a new standard for online shopping by offering free two-day shipping on millions of items, and later expanding to same-day and one-day delivery options. Customers now expect fast and free shipping from other online retailers, and are less likely to shop elsewhere if they have to pay extra or wait longer for their orders. Amazon Prime also offers convenience and flexibility, such as the ability to choose delivery windows, pick up locations, or locker access. These features make online shopping more convenient and satisfying for customers.

- It influenced offline shopping. Amazon Prime not only changed the way we shop online, but also the way we shop offline. By acquiring Whole Foods in 2017, Amazon integrated its Prime benefits into the grocery chain, offering discounts, free delivery, and cash back rewards for Prime members. Amazon also launched its own physical stores, such as Amazon Go, Amazon Books, and Amazon 4-star, where customers can use their Prime accounts to check out faster, get personalized recommendations, and access exclusive deals. These initiatives show how Amazon is using its Prime membership to bridge the gap between online and offline shopping, and create a seamless and integrated shopping experience for customers.

Amazon Prime is more than just a subscription service. It is a powerful tool that has transformed the shopping landscape and created a loyal and satisfied customer base. By offering a range of benefits that cater to different customer needs and preferences, Amazon Prime has revolutionized shopping and set a new benchmark for online and offline retailers.