The next stage of e-commerce giant Amazon’s union with Whole Foods has started, with Florida Amazon Prime Members getting an additional 10 percent discount from Whole Foods products on top of the discounts they have already gotten.
The grocer usually has products in the hundreds on sale at a time, while it also offers weekly huge discounts on a number of its most demanded items. The promotions will start to expand to all Whole Foods and Whole Foods 365 nationwide during the upcoming summer.
The perks for Amazon Prime members indicate Amazon’s intention to combine the power of data with its membership program, as well as the loyal customers of Whole Foods.
The shoppers can enjoy the discounts by providing their phone numbers at the checkout or scanning the Whole Foods Market app.
Meanwhile, the leading e-retail company has started offering other Prime benefits in Whole Foods branches. There’s a 5-percent cash refund when members use its Visa rewards cash in stores. There are also exclusive member deals, like roses on Valentine’s Day and free Prime Now delivery of Whole Foods products among 10 cities.
Such cities include Cincinnati, Austin, and Dallas. Whole Foods expects to ramp up the program to include more cities, improving the service further.
Currently, Amazon doesn’t yet offer Prime Now delivery in Florida, which is the site of the latest discounts. The Floridian grocery market is largely dominated by Publix, even if some of Whole Foods’ toughest competition has come from natural grocer rivals, which include Lucky’s Market, which has struck partnership with Kroger, and Earth Fare. According to industry sources, shoppers in Florida tend to be cost conscious.
The Advantage of the Amazon-Whole Foods Union
In the grocery industry, data plays a huge role in supporting the efficient shelve stocking. The more data the company has from its customers, the more it can strategically offer deals when purchases have weakened.
For now, a huge portion of shoppers browse grocery items online, though most of them buy in person. Combining digital coupons with physical store shopping gives Amazon-Whole Foods a big advantage over other market players.
Membership programs have been among the main focuses for shoppers. Whole Foods’ loyalty program, which ended on May 2, was young and was considered weak, according to industry insiders.
As for retail giant Amazon, the data it gathers from Whole Foods in another tool it can leverage to better understand how its Prime members shop, as well as how the company can get them to buy more.
This also fortifies Amazon’s growing power from a bundle of Prime offerings, which Chief Financial Officer Brian Olsavsky recently tagged as “the best deal in retail.” Olsavsky’s remarks came while Amazon stated that it would raise its Prime’s annual fee by $20 to $119 per year.
Aside from the free two-day shipping, the e-commerce giant provides music streaming and movies. It also offers Thursday night football games via Prime, on top of unlimited photo storage, among other perks.
“Our vision is that every day Prime makes your life better, easier, and more fun, and shopping at Whole Foods Market with exclusive deals and savings is all of this and more,” stated Cem Sibay, who is the vice president of Amazon Prime.