Amazon.com, Inc. (NASDAQ:AMZN) is readying attractive deals for its prime day Wednesday. This move came just a few weeks after the Wal-Mart Stores, Inc. (NYSE:WMT) announced the launch of subscription service. Many people believed that Amazon is shaky and taking steps to retain its lead in the sales. However, it is far from the truth.
The company is offering more deals when compared to the black Friday. Amazon is taking advantage of the Prime Day to retain the prime customers while trying to attract new customers with enhanced benefits that no other retailer offers.
Its move is keenly watched by the Analysts to know whether this move is one time or continue with aggressive sales. The company currently has 44 million subscribers in the prime channel. The annual average spending by the prime members is estimated at $1200 when compared to $700 by the nonmembers.
According to a recent study, the prime members will stick with Amazon whereas its nonmembers may resort to cross shopping between Target Corporation (NYSE:TGT) and Amazon.
To prevent losing the customers to the gimmicks of other retailers, the company has enhanced benefits to its prime customers. The company has offered same delivery along with the addition of more items that its competitors can’t reciprocate.
It is offering streaming music services and Photo storage apart from free shipping. The free shipping option has allowed renewal of prime membership this year too. The renewal of prime membership is estimated at 71%. It charges $99 for prime membership. The digital content has influenced 16% of the customers to renew the membership.
It has not set any threshold level to qualify for free shipping. It is helping Amazon to maintain its prime membership customers.
Amazon has offered discounts up to 70% on some of the top-notch kitchen brands. You need to pay $60 for Amazon HD Fire Tablet and $115 for a 40”TV.
It is creating jitters in Wal-Mart. Wal-Mart has lowered the shopping barrier from $100 to be eligible for benefits. It has also reduced the free shipping barrier from $50 to $35.