The average Amazon customer spends ~USD 600/year, while the average Prime Member customer spends ~ USD 1,400/year.
Everyone knows about free shipping as a Prime Member. For non-prime members, they only get free US shipping if you spend USD25. So, these customers frequently buy something extra they maybe don’t really need or did not plan on buying.
Whenever you look at any item on Amazon, there is always the section nearby that says, “Frequently Bought Together,” to get you thinking about other things to buy. Here, it is a FOMO tactic, maybe I really need this if others bought this at the same time.
Amazon constantly monitors your actions on its site. That is why you will see “you might like…” on the website while looking around or even in an email the next day. If this bothers you, one way to avoid this is if you are just browsing, is to use a different internet browser and don’t sign in to your account. Once you know what you want to buy go to your usual browser and log into your account to make the actual purchase.
Many people like the convenience of “one-click” shopping, but this is so easy, many customers don’t look around further on Amazon or another website for a better deal. It is widely known Amazon changes the price of its product frequently (and not just daily), it can be hourly. Their price changes are based on analyzing competitors’ prices and user data.
Amazon offers really good deals on Prime Day and Black Friday for their devices, so you are more connected and integrated with them. Alexa can help you with your shopping and if you buy a Kindle, you will need to buy books and magazines to read on it.
The idea is to create a “cohesive ecosystem” so you feel like all you need is Amazon.
The best advice is not to assume that Amazon is always the cheapest. Check Target, Walmart, department stores, and the manufacturer’s website. You may not get your purchase in 2-days, but do you really need things in 2 days? In the case of our customers, we do not need things urgently, so take your time and shop around to make sure you are getting the best price.
Thanks to Business Insider for some of the helpful insights that helped round out this post.