DISCUSSION
Amazon gives Prime members another reason to shop at Whole Foods
Written by George Anderson
Amazon.com’s assimilation of Whole Foods continues, this time with the news that holders of the Amazon Rewards Visa card will earn five percent cash back on purchases they make at the organic grocery chain’s stores starting today.
The five percent cash back rewards are available to eligible members of Amazon Prime. Those who have the card, but are not Prime members, will receive a three percent discount when shopping at Whole Foods.
The new cash back rewards plays into Amazon’s plan to put an end to the “Whole Paycheck” image that has hung over Whole Foods for years. Amazon moved quickly to lower prices at the chain on key items when it was acquired last year.
The new rewards perk can also been seen as an initiative by Amazon to further engage existing Prime members while attracting new ones. Prime members are some of Whole Foods’ best customers, spending an average of $1,371 at the grocer on an annual basis, according to 1010data. That’s $306 more than shoppers who are not Prime subscribers.
Today’s move follows the launch of Prime Now deliveries from Whole Foods stores in Austin, Cincinnati, Dallas and Virginia Beach less than two weeks ago. Prime members in those markets are eligible to place online orders from local stores for free home delivery in two hours. They can also receive their orders in an hour if they are willing to pay the $7.99 delivery fee. While plans have not been announced, Amazon has been clear that it intends to expand the Prime Now service from Whole Foods to other cities in 2018.
Amazon has looked to find as many links with Whole Foods as possible since acquiring the chain. The grocer’s 365 private label has become a big seller on Amazon. The e-tailer has set up Amazon shops selling items such as its Echo voice-activated speakers inside Whole Foods.
Today’s move follows the launch of Prime Now deliveries from Whole Foods stores in Austin, Cincinnati, Dallas and Virginia Beach less than two weeks ago. Prime members in those markets are eligible to place online orders from local stores for free home delivery in two hours. They can also receive their orders in an hour if they are willing to pay the $7.99 delivery fee. While plans have not been announced, Amazon has been clear that it intends to expand the Prime Now service from Whole Foods to other cities in 2018.
Amazon has looked to find as many links with Whole Foods as possible since acquiring the chain. The grocer’s 365 private label has become a big seller on Amazon. The e-tailer has set up Amazon shops selling items such as its Echo voice-activated speakers inside Whole Foods.
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