Why Amazon Prime users are valuable for Amazon sellers?

Why Amazon Prime users are valuable for Amazon sellers?

Prime started as a two-day shipping membership for devoted Amazon shoppers, and it didn’t add any additional benefits until 2011. However, since then, Prime has grown into a subscription service with more than 100 million paid users worldwide, while the service itself has evolved to include additional perks over the years.

Amazon Prime is a great value for Amazon shoppers

Nowadays, Prime is best known for things like free release-date delivery (where customers can make a pre-order of a new book or a hot new tech product), free two-day shipping, free 2-hour delivery in the selected postcodes, alexa deals, whole food benefits, Netflix-style video streaming etc.

All these things Amazon Prime offers just for $12.99 in USA or £7.99 in the UK per month. , in order to attract Prime users to spend more on their platform buying goods online.

Besides that, Amazon literally influencing customer behaviour by offering various discounts and promotional rebates, having an impact on the buying decision of their users.

Statistics show that a number of paying Amazon Prime members in the United States grew from 25 million in 2013 to 95 million in 2018, which is an incredible growth.

Source: Statista

The same percentage of growth is observed in other marketplaces. It is important to remember, that Amazon's business strategy is to focus on their customers and constantly improving the user experience for them.

What does it mean for sellers? - Amazon Prime users are more likely to buy

Here are some important numbers which show why you should really consider Prime users as a huge potential for your business:

• There is a huge difference between Prime and No-Prime users regarding how often do they visit Amazon.

Source: Feedvisor

2. And here we can see the difference in purchase frequency:

Source: Feedvisor

As it was mentioned before, Prime customers are offered various discounts and promotional rebates. It is much easier to sell additional items or have an increased basket size for your potential buyers on Amazon, rather than any other e-commerce platforms.

Moreover, Prime users are constantly looking for lightning deals, where sellers can advertise their products with the discounts. Lightning deals appear on the separate page on Amazon with an increased visibility by the potential users.

Extremely high sales are generated on such days as Cyber Monday and Black Friday, but the most popular one is called "Prime day".

What is Prime day?

Created in 2015 to celebrate Amazon‘s 20th birthday, Amazon Prime Day is like the little Christmas sale in summer. The Prime Day recreates the Cyber Monday and Black Friday sales and is one of the biggest selling days for Amazon sellers. A deal focussed event, the Prime Day deals are accessible only by the Prime members.

Amazon Prime Day is the busiest day for Amazon sellers. The best Amazon sellers are constantly looking for ways to improve their sales and ROI.

In 2018 Prime Day was defined as the "biggest in history" as Prime members purchased more than 100 million products globally during last year’s event for a total sales at least $4.19 billion internationally.

Source: Internet Retaile

In conclusion, I would like to quote one of the JPMorgan analyst sayings:

"Prime delivers such massive scale and features that we believe it would be very difficult for any company to replicate and compete against, and Amazon continues to expand and add more value to Prime by adding new benefits and growing existing offerings,"

Let us know if what you think about the rapid growth of Prime popularity in the comment section bellow, or what is you experience with the Amazon Prime?