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Home » Loyalty & Rewards Programs » Amazon Blazes New Retail Trails with its Paid “Prime” Loyalty Program

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April 23, 2018  |  By Alan Steinberg

Amazon Blazes New Retail Trails with its Paid “Prime” Loyalty Program

Once again, Amazon is blazing new trails in retailing, this time with their paid Prime Membership Loyalty Program. Amazon reports they now have stunning 100 million paying members for Amazon Prime. CEO Jeff Bezos said that last year, more members paid the membership fee to join Prime than any previous year. Remarkably, Amazon Prime members spend a lot more per year – 85% more on average – than non-Prime members ($1300 per person vs. $600). This is just one more indication of how Amazon is being innovative in adding value to its loyalty program – generating new revenue with paid memberships while at the same time motivating customers to spend more.

In another sign of Prime’s growth, Amazon’s grocery retailer, Whole Foods, has announced it will end it’s rewards program and digital coupons on May 2, 2018. Since Amazon acquired Whole Foods, a stronger push to join Amazon Prime has been the focus and it has made multiple announcements about growing its Prime membership plan through Whole Foods. It seems the added Prime perks at Whole Foods have helped membership grow in the paid loyalty program.

Sources: USAToday.com, TotalRetail.com

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