Amazon Prime New Credit Card Gives Consumers More Money to Buy More Goods

Amazon Prime New Credit Card Gives Consumers More Money to Buy More Goods from Amazon Sellers

By: Alex Maglione, Paralegal

Amazon and Chase have come together once again to introduce the new Amazon Prime Rewards Visa Signature Card. This offer gives shoppers another reason to shop with Amazon as well as more money to spend on Amazon.  More credit means more opportunities for Amazon sellers.

 

Amazon Sellers using FBA Products on Amazon Prime Will Likely Benefit

According to a survey by Morgan Stanley, Amazon Prime members spend about 4.6 times more money on its platform than non-prime members, and its credit card holders spend even more than what non-card holder Prime members spend. Amazon’s sellers on FBA can benefit from the continuous increase in sales.

Amazon and Chase are using a 5% cash back incentive on any Amazon purchase incentive as well as a $70 Amazon gift card with sign up and credit approval.  For Amazon sellers, anything that continues to entice customers to the Amazon platform and make Amazon their default retailer is good for Amazon sellers.

 

Amazon Sellers Sell More Goods to Amazon Prime Members

This latest offer is geared to increase Amazon Prime membership.  The company already offers an Amazon branded credit card that offers 3% Amazon Primecash back on all purchases made on the platform.  However, this new card is only available to Amazon Prime members.  The hope is that the new card’s benefits will entice more people to switch to an Amazon Prime membership.

Any Prime member who currently has the Amazon Rewards Visa Signature Card will automatically be switched over. Cardholders will receive 5% back on all Amazon purchases and the points earned on Amazon can be spent on Amazon or it can be redeemed for cash.

The promotion of the card to, it seems, obtain more Prime members and to entice customers to spend more money includes statements from a reward focused website.  Zach Honig, the editor in chief of reward site, The Points Guy.  Mr. Honig stated that the card is a “very simple option for getting the greatest return on Amazon purchases[s].” “If you want something really straightforward, one card to use for all Amazon purchases, this is the way to go.”

 

Amazon Follows Traditional Paths for Increasing Credit Card Sales

Creating a branded credit card, as many companies have done before, can boost a shopper’s loyalty to that brand.  This is a combination of brand loyalty and the endowment effect; when a consumer has grown accustomed to a brand for years, that is where their loyalty tends to lie.

 

Amazon’s ever Increasing Brand Loyalty

Brand loyalty is not about the delivery of the “best product at the best price;” it is about understanding the consumer behavior and what drives them to behave in the way they do.

Amazon’s continuous growth of its brand loyalty helps Amazon sellers by continuously expanding the consumers on the platform.

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Phone: 1-877-9-Seller