Amazon Prime: Online Marketing by Prime – Amazon.co.uk: by
Jason Li 2013 ©
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IMPORTANT ANNOUNCEMENT (For Marketeers Regarding Amazon Prime)
“Try Amazon Prime FREE for one month: Unlimited FREE One-Day
Delivery on millions of eligible items; Express Delivery for £4.49 per item
(delivery before 1pm).”
“Over 300,000 popular Kindle Books to borrow for free, as
frequently as one book per month and with no due dates.”
(Taken from Amazon Prime)
Amazon Prime – what you have just read is about a service
that is changing the world forever.
It’s the single most important business copywriting and
strategic marketing reveal that you must analyse and understand if you want
your business to succeed.
So Am I Promoting Amazon As A Secret Amazon Prime Employee?
No... Although - I admit straight away: I LOVE AMAZON.
For me... first came the internet, and then came GOOGLE and
Amazon as the world’s most useful internet services in the world.
And it’s going to be for the foreseeable future possibly
humankinds most valuable consumer supplier of goods and services.
Here’s Why (And How Amazon Prime will do this)...
Amazon has played its card in how it is going to get even
more rich, and you’re about to see why this is with Amazon Prime.
What is Amazon Prime?
There’s some clue in the opening paragraphs so I’m going to
state how important it is and have you read it again:
“Try Amazon Prime FREE for one month: Unlimited FREE One-Day
Delivery on millions of eligible items; Express Delivery for £4.49 per item
(delivery before 1pm).”
“Over 300,000 popular Kindle Books to borrow for free, as
frequently as one book per month and with no due dates.”
In summary, at the time of writing in June 2013, customers
get to borrow free Kindle Books and enjoy free delivery. Plus there are
streamlining movies services too.
So you see, for those who understand how effective direct
marketing and strategic marketing is... Amazon is going to be
The De facto World’s Greatest Direct Marketing Business!
Here’s some stats to prove it:
Amazon was launched in the United States in 2005.
(Taken from Wired.com) In the fiscal year of 2012, analysts
at Morningstar suggested that Prime members grew from 7 million to nearly 10
million. Prime membership was greatly boosted by promotions to customers who
bought a Kindle Fire.
In total, Amazon had about 182 million customers during the
year, so Prime members make up about 4 per cent of the total customer base.
So here is the significant bit about profit: Prime customers
accounted for $78 more in profit before interest and taxes per customer than
non-Prime customers, as revealed by Morningstar analyst R.J. Hottoy.
And now the comparison bit: The average Amazon customer when
calculating the operating profit from the 182 million customers is $10 per
customer. So Amazon Prime customers are
about
SEVEN TO EIGHT TIMES MORE PROFITABLE
than a non-Amazon Prime member.
And now for the insane bit: about a third of Amazon’s profit
come from just 4 per cent of customers who buy stuff on Amazon.
So how does Amazon go
on to be the de facto direct marketing business on the internet?
Amazon Prime is capturing all the people in the world:
a)
Who have money to spend.
b)
Who are happy to buy direct... that is online.
c)
By offering people with money the convenience,
opportunity to save money, and the service of wider selection of goods; so that
it is easy to just go to one-stop Amazon to see if what the buyer wants is
listed by searching Amazon’s product database.
d)
By keeping in touch with people who keep on
spending by being constantly relevant...Prime members keep revisiting... and
spending.
Once you’ve got used to buying books, Amazon’s fantastic web
designers and copywriters make it easy for you to notice other items in other
categories by:
·
Promoting other books.
·
Promoting non-book items such as brand name
watches to streaming films to baby toys.
Emails
The secret power of Amazon is in emails.
Amazon sends you regular emails on all sorts of categories
to tempt you to buy special offers. It’s really hard for consumers to resist.
Just think of near enough every item that are resold in
retail shops (eg. Your Armani watch or Nike T-shirt) in the most popular and
largest locations. Think of John Lewis, or Oxford Street in London, or even the
Trafford Centre in Manchester. Amazon will likely have the item available.
Think about it, you can kit out your whole home by buying
off Amazon without having to leave the sofa.
But Amazon Destroys
Business
Isn’t that what locals always say when a successful
innovative business comes along.
(Hey... there’s nothing better than a local business with
tradition and history.)
In fact, we’re lucky we live in a free market system and
innovation is here to improve customers’ buying power, or else monopolies can
dictate products and prices.
So yes, you may not like your Tesco’s taking customers from
local businesses, but look at it this way... if there are two restaurants on
the same street, and one is busy and the other hardly has any patrons...
Is It The Restaurant That Is Struggling That Is Wrong
Or Obviously It’s The Consumer Who’s Wrong?
So the question must be posed? Is it big businesses that
destroy local businesses, or consumers who are not considerate and change to
shop at big businesses; or the local business who cannot be bothered to
innovate and improve? Hold that thought.
Amazon Prime Innovation
Remember the paragraph describing the services of Amazon
Prime?
Amazon would have spend months analysing the customer
research data to come up with their new compelling strategy of capturing the
segment of
The world’s most CONSISTENT SPENDERS in the online direct
marketing category
During a history of innovation and technology to improve
humankind, humans cannot resist technology.
You see – humans choose the easy option when faced with
similar choices (a consumer psychology tip that can help you win orders by just
mastering this technique alone – it’s in the ebook The Goose Bump Effect in
more detail.)
Here are some examples to prove it:
·
We wore clogs and moved onto shoes.
·
Transport was once by horseback, now it’s by
car, bikes, trains, airplane (and skateboard).
·
Messages were sent by letters, and now sent by
text, social media or email.
·
Once we drove into town to buy books or a
film... now you just search Amazon.
And this is where we are today: Innovation, convenience,
better pricing, wide selection of goods and so on and so on.
That’s why Amazon Prime is the most important development in
direct marketing.
Scared by Amazon Prime?
You don’t have to be. You just need to keep being
systematically pro-active.
Here’s some ideas that might help your business:
·
Don’t ever stop innovating even if you are top
of the tree.
·
And don’t forget the importance of direct
marketing. Keep in contact with your customers.
·
Make sure you systematically collect data and
research your customers.
Thanks for reading. Please share this article with friends
who like Amazon.