Amazon is set to rack up $5.8 billion over Prime Day 2019 – nearly doubling it's revenue from last year:
an estimated $800 more than nonmembers annually. Losing these customers to other retailers — whose deals can be accessed without a subscription — could hurt Amazon's Prime recruitment efforts.
Amazon is using Amazon Pay to take advantage of Prime Day's growing connection to other retailers and gain back control of the holiday, and it may need to consider other tactics as well. Strong conversion rates helped drive lift at retailers with over $1 billion in annual online sales during Prime Day 2018, according to.
The retailer is offering consumers the ability to receive Amazon gift cards if they use Amazon Pay with select retailers. Retailers like Vineyard Vines, Chico's, and Brooklinen aredeals for Prime Day, including that consumers who use Amazon Pay with them will receive an Amazon gift card equal to the value of 20% of their order. This can drive adoption and usage of Amazon Pay while also enabling Amazon to reap the benefits of Prime Day sales that occur away from its marketplace.
Amazon may consider leveraging its new partnerships with physical retailers to control more of Prime Day. Amazon recentlyCounter, which sees it partner with retailers like Rite Aid to offer click-and-collect services at their stores. Offering buy online, pickup in-store could make Amazon's Prime Day offerings more attractive.
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