Capturing the Prime Consumer on Amazon

January 13, 2016

Marketplaces Laura Lane By Laura Lane

Amazon Prime members pay a yearly subscription fee to get unlimited one-day delivery on millions of items, along with access to media streaming. The service is becoming increasingly popular, with some estimates putting global membership in the region of 80 million worldwide. What’s more, membership is growing dramatically; 40% of Amazon customers in the US are Prime members, versus 25% in 2013.

To boost Prime momentum even further, Amazon has been investing billions in faster delivery options for Prime members: Same-day delivery and even one-hour delivery are becoming the norm in many cities since Amazon rolled these benefits out in 2015. It is because of this growth that retailers are trying to reach these Amazon Prime members.

Prime Customers Are Big Spenders

Prime members are Amazon’s most loyal and high-spending customers, reportedly spending double what non-members do on the site after subscribing. Prime membership builds a type of customer loyalty that’s unparalleled in the e-commerce industry. Almost three-fourths (74%) of Prime members said they used Amazon more today than when they first joined Prime. Also, 73% of Prime customers said they shopped at Amazon at least two to three times a month, while only 22% of non-Prime customers said they did.

To illustrate Prime members’ spending power, we just need to look to Prime Day. In July, as a celebration of its 20th birthday, Amazon announced a Prime-exclusive shopping day called Prime Day. While everyone expected a surge in sales, the results were astounding. Amazon broke its own Black Friday records, with customers ordering 34.4 million items across Prime-eligible countries — 398 items were ordered per second. Worldwide order numbers were 266% ahead of the same day last year, and 18% up on Black Friday 2014.

How Can You Get on Amazon Primers’ Radar?

To get your products in front of Amazon’s elite Prime members, you need to sign up for Amazon’s Fulfilment by Amazon (FBA) program. FBA is not only a practical fulfillment tool, but it can also help boost your visibility on the marketplace. FBA products automatically qualify for free shipping and are eligible for Amazon Prime. Prime customers can filter search results for Prime-eligible offers only, so your FBA status gives your products a great opportunity to get found by Amazon’s most highly prized shoppers.

As a bonus, by opting to participate in FBA, you’ll also have a better chance of winning the Buy Box. Experience suggests that sellers that offer superlative customer service (e.g., as provided by Amazon itself via FBA) stand a better chance of earning the Buy Box.

More Reasons to Opt for FBA

Amazon carried out a survey of FBA sellers in 2014 and 71% of respondents said they experienced a sales bump of 20% after joining the program.

Use FBA to Capitalize on Peak Days and Last-Minute Shoppers

FBA offers sellers a convenient way to fulfill and service last-minute offers at peak times, such as Black Friday and the week before Christmas. Amazon’s fulfillment centers have the capacity to cope at busy times — with customer service teams available 24/7, 365 days a year. All of which means far less stress for sellers and happier customers.

Additionally, by using Prime, you can extend your sales far closer to peak shopping days than you could imagine if you were fulfilling yourself. For example, in the US, the last Prime Now order that was delivered in time for Christmas of 2014 was placed on December 24 at 10:24 p.m. and was delivered at 11:06 p.m.

How to Use FBA to Capture Prime Customers

It’s simple to start selling through FBA. Simply opt in and your products will be stored in Amazon’s fulfillment centres. When a customer orders from you, Amazon picks, packs and ships the item to its final destination, and also handles customer service and the paperwork on your behalf. There’s no contract or minimum quantity, and you can recall your inventory when you like.

To learn more about FBA and how it can help you boost your visibility on Amazon, download our 7 Ways to Get the Most Out of Fulfillment by Amazon tip sheet.