Amazon Reportedly Testing 'Buy Again' Tactic To Lure You Into A Spending Loop As Prime Sign-Ups Slow Down
Portfolio Pulse from Ananya Gairola
Amazon.com Inc. (NASDAQ:AMZN) is testing a new feature called 'Buy Again' on its app to encourage repeat purchases from existing customers. The feature offers tailored product recommendations based on customers' buying history. This comes as Amazon faces declining growth in Prime memberships and reduced spending from users. Data shows a decrease in average annual spending by Prime members from $1,400 in 2018 to $1,100 in 2020. Non-Prime members have also reduced their average spending from $600 to $500 annually.
October 11, 2023 | 5:31 am
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NEUTRAL IMPACT
Amazon's new 'Buy Again' feature could potentially increase its revenue by encouraging repeat purchases. However, the declining growth in Prime memberships and reduced spending from users could negatively impact the company's revenue.
The 'Buy Again' feature could potentially increase Amazon's revenue by encouraging repeat purchases. However, the declining growth in Prime memberships and reduced spending from users could offset these gains. The impact on the stock price is uncertain, hence the neutral score.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100