Amazon is giving tough competition to all retail companies through 'Amazon Prime'
It is a battlefield for the retail companies now, including giants such as Walmart, Best Buy, Target, and Amazon etc., which are all out to become the best in the market. As these companies struggle for perfection, they try their best to stop rivals to become one. In this time, it is doing all it can to restrict Walmart and Best Buy to lure customers away from it. Forbes reported that Target and Walmart are being 'crowded out' online by Amazon's Prime. The company recently launched its one-hour and two-hour delivery services, which have said to become the game changer for it.
The big box retailers, such as Walmart, have been 'all in' to impose great threats to the digital marketplace and its growing influence with its new policies. The new policies of the ecommerce giant include a change in minimum amount of products to be purchased for 'free delivery', matching of prices with other retailers, and drone delivery system. Hence, with all of this, it is believed that the Amazon Prime customers will rarely visit any other retailers, such as Walmart.com or Target.com. Instead, the company is determined to expand its customer base within the United States as well as in international markets eventually.
Forbes states, "Amazon's $99 a year subscription service has already started to crowd out traditional retailer, such as Walmart and Target, when it comes to the likelihood consumers will visit more than one marketplace when shopping online." Previously, an online marketplace was same as the online streaming services that Netflix dominate. Consumers were never satisfied with one service due to their unlimited needs and wants; therefore, they chose to subscribe to more than one service along with pay TV cable. However, the online corporation is all set to bring a halt to this tradition and provides a one-stop solution for all.
Millward Brown Digital, a research consultancy firm published a new report, which said that the customers of the online market that have 'Amazon Prime' accounts are 'less likely' to visit any other retail site including the top retail companies' website while making purchases online. So far, it has more than 40 million subscribers.
The report further said that the online tycoon has noticed a massive increase in terms of traffic, which is mainly generated from Amazon Prime members. Is traffic was supposedly increased by 300% in the past year. "This increase means a growing number of shoppers visiting other retailers' websites are also Prime members. During the most recent holiday season, for instance, 8% of Walmart.com shoppers also belonged to Amazon Prime. That is up from 2% during the same period in 2013", says a researching consultancy firm.