Amazon has once again expanded the benefits for Amazon Prime members. The newest benefit for Prime members gives them exclusive access to certain products on the site. There are currently only a few video games and movies reported to be exclusive to the service. It remains to be seen if this move will increase memberships, or drive consumers to competitors like eBay.
Amazon: Building a Brand
Amazon Prime was introduced in 2005. Eleven years later it now has 54 million members. For $99 a year members receive free two-day shipping, unlimited access to video and music streaming, and unlimited cloud storage on Amazon for photos and documents. Recently Amazon gave members the ability to add additional streaming services through Showtime and Starz. Amazon’s latest change gives members the option to pay a reduced cost for a stand-alone video streaming service. A service that was previously only available through Prime.
Prime: Putting Up a Wall
Amazon’s latest actions create a gap between members and non-members. Birdman on Blu-ray and GTA 5 on PS4 are some of the first titles to become exclusive. Will other titles soon follow them? Non-members can still purchase these exclusive products through marketplace sellers, but how long will it be before this is their only option? Amazon’s latest move could hurt sales and send consumers running to competitors such as eBay.
Ebay: No Membership Required
Ebay could bring in some new customers with the latest Prime benefits. With online auctions, eBay gives customers the chance to win products at a cheaper price. Ebay also lets users pay for their purchases with PayPal. With PayPal, consumers are given a faster way to pay without having to deal with credit cards or checks. Ebay gives consumers a nontraditional way to shop, but at least they’re not leaving shoppers out in the cold.
