This ecommerce strategy article is an excerpt from our new book, The Ultimate Ecommerce Email & SMS Playbook. We’re diving into our ecommerce strategy chapter focused on the 7 Reasons Why Ecommerce Customers Leave Your Brand.
Reason 3. Amazon’s Conglomerate of Value.
We’ve established that Amazon owns scale and search; those reasons alone mean that Amazon is nearly unstoppable when it comes to gaining new customers and keeping them reliant on their ecosystem. Amazon’s huge conglomerate value, though, is instrumental in breaking customers from their loyalty to other brands and retaining the customers they gain. The sheer amount of value add-ons is nearly unbeatable.
Number of Amazon Prime users (US) from 2017 to 2022 (Statista)
The Statista graph shows the annual growth of Amazon Prime users. Although growth has slowed in recent years, Prime membership is almost table stakes for being an Amazon customer. Everyone has Prime and are leveraging Prime value in numerous ways.
In 2017, Amazon Prime membership was about 100 million; currently, Prime membership is projected to grow to 153 million subscribers in 2022. Amazon Prime membership makes financial sense because of the value-stacking that comes with Prime. Amazon Prime offers customers great benefits such as free two-day delivery, special grocery deals at Whole Foods, Amazon Prime Video access, Audible access, and numerous other benefits across their portfolio of brands and services.
That Amazon Prime value-stacking is simply unbeatable and extremely convenient as membership can be managed seamlessly across brands, services, and apps, all from one Prime account. You log in to one account, and you now have Prime advantage across multiple platforms – Audible, Amazon Prime, Amazon Cloud Player, Whole Foods, Zappos, and on and on. As of the time of writing this book, Amazon recently launched “Buy Now with Amazon Prime” on multiple retailer websites, offering another value proposition that brands have to compete with.
Amazon was the first to pioneer a one-click checkout, so it’s no surprise that customers have a one-click option for unlocking immense value.
Unless you’re one of the top ten e-commerce brands, creating a conglomerate of value to rival Amazon Prime is simply not feasible for the small guy. The value of an Amazon Prime membership is reason number three why customers leave you for Amazon.
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