Finance and Business

Sneaky Ways Amazon Gets You To Spend Money

amazon is massive in 2018 the company earned an estimated two hundred thirty two billion dollars in retail commerce and it’s all thanks to its customer base the average amazon customer spends about six hundred dollars a year on the site and Prime members they spent fourteen hundred dollars each so how does Amazon keep getting people to spend our money free shipping is nearly synonymous with the Amazon brand even if you’re not an Amazon Prime member you can qualify for free shipping if your order hits the $25 minimum so you’ll likely end up throwing in something extra like a pair of socks just to reach that minimum an Amazon makes it super easy to find that little something extra to add to your order which sections like frequently bought together and customers who bought this item also bought which are generated from shopping profiles similar to yours so Amazon is always collecting data on its customers it makes these psychographics that target its customers you know that’s how it comes up with the if you like this you might also like this kind of thing since most people use the search bar rather than browse around Amazon wants to make sure they still get lots of options in front of customers the aim is to sell a higher number of items to offset its losses from free shipping it also makes it as easy as possible to order more with one-click ordering it’s kind of simple logic that people like to impulse purchase sometimes and for a ability to facilitate these impulse purchases one-click ordering is great because it can just you know you’re like oh I see it I want it I bought it the watch out you may end up paying more with these instant purchases since Amazon’s prices are always fluctuating Amazon analyzes competitors prices and user data to update its product prices over 2.5 million times a day that’s a price change every 10 minutes for an average product listing a one-click purchase makes it easier to buy without browsing around for a better deal but if one-click ordering and free shipping aren’t enough the next step up for an amaz customer is Amazon Prime perhaps one of Amazon’s smartest developments today there are over a hundred million members paying one hundred nineteen dollars a year for Amazon Prime and as of October 2018 there was spending an average of fourteen hundred dollars a year a hundred dollars more than the year before but why well one of the perks that comes with Amazon Prime is expedited shipping free of charge of course Amazon Prime members spend more than regular Amazon customers just because they’re locked in they are so addicted with convenience they love seeing their packages show up in two days or one day or on the same day and because studies show same-day deliver users shop more frequently spend more and are more loyal than other customers Amazon announced it would invest eight hundred million dollars in one quarter alone to make one day delivery the new standard for its prime customers and it isn’t the only way Amazon is investing in its prime program Amazon is constantly promoting Prime on its website it’s doing free trials it’ll do a 30-day free trial and then if you try to cancel it it’ll be like oh but you can stay for another seven days for only two dollars it’s just they’re always trying to think of new ways to target this core customer that’s kind of on the edge of becoming a prime member but not quite there yet another major way Amazon promotes its prime program is with prime date since launching in 2015 the July shopping event has offered extensive price cuts and deals for a limited time prime D 2019 was Amazon’s largest shopping event in Amazon history in a recent survey 60% of Americans said that they felt prime they pressure them to buy quickly and 20% said they were already planning to spend $300 think about it it’s like Black Friday in the middle of July and it’s just a day for you to treat yourself and buy that thing that you’ve been looking at like that’s really the design of it amazon offered a free prime trial for customers looking to participate in prime date as always their bigger picture goal is to get as many people integrated into the Amazon ecosystem as possible the Amazon eco system isn’t just Prime you’ve got Amazon devices like Alexa and Kindle as well that’s why you often see Amazon offer devices like the echo or Kindle at a discount because Kindle users spend even more than Prime members on average one thousand four hundred and fifty dollars per year and the owners are obviously also more likely to buy from the Kindle I shop for their ebooks so there’s just like a lot of ways that Amazon can kind of tie in its digital offerings with its physical offerings and kind of create this cohesive ecosystem that at some point a customer might just never have to leave but should you be buying everything on Amazon my general advice for Amazon customers is that it’s not always the best price and a lot of other online companies are kind of beefing up their offering so you might get an item in two days without it being advertised as two-day shipping and it might not even be at a better price so look elsewhere there’s a lot of companies especially Walmart Target the big box stores that you might think of as you know kind of stayed and old school are actually beefing up their online operations and can almost match Amazon not quite but almost
Video source: https://www.youtube.com/watch?v=LpG6jzawQnE

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