Amazon has announced that customers of its Prime subscription service will see their Prime benefits extend to certain third-party retailers.
Re/Code reports that Amazon Prime members can now receive free, next-day delivery on products ordered from British retailer AllSaints‘ online store. The deal also sees AllSaints products appear in Amazon search results, but with customers clicking through to purchase being redirecting to the AllSaints website.
Re/Code’s Jason Del Rey believes it could signal the beginning of a push by the online retailer to “become the VIP pass for the rest of the web”.
“The move underscores the growing importance inside Amazon of the Prime program,” writes Del Rey. “And it’s clear why: Prime members spend double the amount that non-Prime members do on Amazon in a year, according to research studies conducted by various industry analysts.”
Darrell Etherington of TechCrunch points out that Amazon only makes what is essentially an affiliate fee on any purchase through the agreement, even though AllSaints customers would be using their Amazon login name and payment details.
“But Prime rules all at Amazon,” writes Etherington. “It’s a growing source of revenue and profit for the online retailer.”
The deal with AllSaints hasn’t attracted as much interest from higher-end retailers, however. Big names such as Abercrombie & Fitch and Neiman Marcus baulked at the deal when it was offered to them, potentially over Amazon’s looming threat as a competitor as it gains more customer information. Instead of Amazon Prime, these two retailers opted to sign up with Prime competitor Shoprunner.
Nonetheless, Amazon has been slowly improving the offering it has with Prime; current catalogues of video and media content are being improved upon through new partnerships and original content creation, a new music streaming service is being introduced, and unlimited photo storage for Prime customers in its cloud service. These improvements help justify a price rise for the service earlier this year.
“Amazon wants you to buy Prime, and it’s probably not done giving you reasons to do so,” closes Etherington. “If Prime continues to extend beyond Amazon’s border, it could be the next evolution of an airline-miles type loyalty points program, but with rewards that span the breadth of the web.”