5 Retailers Competing with #AmazonPrime

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Amazon Prime grew 35 percent in 2015, reaching 54 million U.S. members according to data from Consumer Intelligence Research Partners.

These members aren’t only taking advantage of free shipping however; they are also spending more than average customers. In fact, the data shows that Prime members spend an average of $1,100 per year compared to non-members’ average of $600 per year.

Although it is difficult for most retailers to compete with Amazon’s Prime offering (due to lower order volume and the high-cost of shipping), that hasn’t stopped some from trying. In fact, there are a variety of retailers that offer shipping programs similar to Amazon Prime in an effort to foster customer loyalty and increase profit margins.

For some inspiration for your own business, check out the list of five retailers competing with Amazon Prime below:


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Sephora

Sephora’s Flash program gives customers free two-day shipping for just $10 a year. There is no minimum purchase required with the program, and customers even have the option to overnight their purchases for a fee of just $5.95. It is also important that Flash shipping is a free perk for the company’s VIB Rouge members, which are customers that are part of the retailer’s Beauty Insider loyalty program and have spent at least $1,000 over a calendar year.


Newegg

Online computer electronics retailer Newegg offers a shipping program called Premier, which comes with a variety of pricing options, including $19.99 for three months, $29.99 for six months and $49.99 for 12 months. The program offers free three-day-or-sooner shipping, free returns and enables users to add up to four friends to their account who can also take advantage of the perks. Other benefits of the program include waived restocking fees, rush processing, a private customer service line, exclusive deals, special alerts and more.


Target

Target’s shipping offering is a little different from the aforementioned options, as it is not a service users can purchase. Rather, customers that have a Target REDcard (which is a Target brand debit or credit card) automatically have free shipping on all orders. What’s more, Target REDcard members get five percent off of their orders as well as 30 extra days for returns.


Urban Decay

Makeup addicts can get their Urban Decay haul shipped for free by signing up for the retailer’s Beauty Junkies loyalty program. Unlike Sephora’s Flash program, joining Beauty Junkies is free for customers. Those who are interested simply sign up for the program by giving the retailer some personal information (such as address and birth date). They then receive free shipping on every order with no minimum purchase. What’s more, members earn points with purchases that can be redeemed later for special rewards. Beauty Junkies also receive special offers, promotions and gifts, as well as get early access to new product launches. Lastly, members of the program are able to level up based on the points they earn, with each level coming with additional benefits. The top “Rockstar” level, for example, offers free expedited shipping on orders.


Columbia

Customers can join Columbia’s Greater Rewards program for free, which enables them to earn points and rewards as well as obtain free standard ground shipping. Members are required to give the retailer some personal information to sign up for the program, such as their location, gender and birth date. After sign up, members have access to the program’s perks, which include free shipping, 10 points for every $1 that is spent and member-only discounts. What’s more, members can earn points without having to spend money, as the company offers points for social activity, such as following Columbia on Twitter and sharing branded posts on Instagram.


This is just the tip of the iceberg of Internet retailers offering free shipping programs. Has your company experimented with a Prime-like shipping solution? Let us know in the Comment section below.


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8 comments

RyanZ 03-21-2016 2:37 PM

Of course, you also have shoprunner.com. A subscription based service like AmazonPrime, that you can use at many retailers.

ju 03-21-2016 5:15 PM

How will these other companies really compete with Amazon?  Especially since Amazon offers so many of the same types of products and seemingly endless choices of other products consumers need and use.

JoeS 03-21-2016 5:58 PM

I am sure Amazon will welcome the competition, knowing their prices can compete with any of those companies in all merchandise they already provide to customers.

SteveH 03-21-2016 10:50 PM

B & H Photo and Video - http://www.bhphotovideo.com/ - Prices are generally equal to Amazon. Free shipping. Orders ship within a couple of hours of ordering which Amazon doesn't do anymore. Amazon takes days to ship. By the time Amazon puts my order in the mail, my B & H order has arrived. First rate service. Not quite the selection of Amazon, but what they carry is high value and quality.

KellyK 03-22-2016 4:04 AM

There are two main characteristics  for Amazon that others will need to get past. First Amazon is well known and trusted - the oldest dog in the hunt so to speak that is always the hard one to beat out - look at Ebay not the best auction site but surely the biggest and most used.   The second is that Amazon does not own most of the product so they really don't filter based on carry cost they get paid to take orders and ship. Walmart and target are trying this with online sales but in the end it is Amazon that does this so well.  The big stores built their model on controlling margins and profitability Amazon makes their money regardless of whether the seller makes money.  However for me as a consumer I get way better selection and way better service than battling my way through a store.  And for the manufacture they are not being told by the "marts" what product to build and sell

KarthikaH 03-22-2016 6:54 AM

thanks for giving an valuable information to us.this typoe of clear information is useful to share more

UEFA Euro cup 2016 06-03-2016 2:45 PM

Cool though man,, Loved it

email extractor software 06-07-2016 3:53 AM

everyone is competing with amazon but it still remains the leader

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