My Amazon habit goes way back. I joined Amazon Prime as soon as they started the program. If some villain wanted to take away my Amazon he would have to pry my mouse from cold dead hands Maybe I’m being overly dramatic but you get the point.
I no longer think about the selection, convenience, service, price, “free” shipping or much else when I shop at Amazon. Even New York State’s insistence that Amazon collect sales tax did not break my habit. Not everyone is in the habit though. Amazon is pushing hard to addict as many people as possible. Gaining market share during a recession is the name of the game and Amazon wants to hook people now so they will be loyal customers like me when the economy recovers.
In “Amazon Prime Squeezes Already Struggling Rivals” by Matt Pace on the Compete.com blog he writes an extensive analysis that I encourage you to read:
What impact on members’ shopping habits does Prime have? Does it drive heightened Amazon loyalty? Consider the following observations of Prime member shopping patterns in December:
- 49% of the time Prime members shopped online, Amazon was at least one of the retailers they visited (compared with 29% for non-members)
- 40% of the time Prime members shopped online, Amazon was the first retailer they visited (compared with 24% for non-members)
- 53% of total online retail purchases made by Prime members in December were made at Amazon.com (vs. 29% for non-members)
I have a question for you, not whether or not you’re an addict too, even though I’m curious. My question is: What can you do to squeeze your rivals to gain market share and are you doing it?