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% cash 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.
ABOUT THE AUTHOR:
Amazon Sellers Lawyer is a legal team that is dedicated to defending sellers’ rights by applying legal strategies to protect their accounts and handle account suspensions, complaints and policy violations. Founder, CJ Rosenbaum started his practice in 1994 where he represented entrepreneurs who operate both online & brick & mortar businesses. CJ is also a courtroom lawyer and litigator. CJ has represented various people across the United States, has taken countless depositions and tries more cases each year than most lawyers do during their entire careers.
Amazon Sellers Lawyer has the legal background needed to tackle Intellectual Property complaints that arise on the Amazon platform. Many times, these complaints are baseless or simply misguided. This legal team has the experience needed to resolve these issues and have a seller’s account reinstated. Amazon suspends sellers’ accounts everyday, and those sellers often feel helpless. This firm takes pride in being able to help get these accounts reinstated and work with these individuals to implement new business practices that will prevent future issues.