INSUBCONTINENT EXCLUSIVE:
Amazon Prime has been an enormous influence on e-commerce, but this online juggernaut is beginning to show cracks
Now is the time for arch-rival Walmart to swoop in with a Prime-like offering that strikes at the weaknesses Amazon has introduced into its
formidable loyalty program: price, a lack of focus, and competing subscription services.
Here the problem
Amazon has invested in its Prime program continuously, adding feature after feature in an obvious bid to make the service appear as valuable
But while these additions are superfluous to many a user needs, everyone pays for them whether they&re used or not.
That part of the
strategy, of course — if you know your customer won&t stop paying for a subscription, you can use that to squeeze the life out of other
subscriptions they might pay for, and redirect that money to yourself
Prime Video and Music, for example, are clearly meant to take the place of Netflix or HBO and Spotify or Apple Music
Why pay for two And if you have to choose, well, it easier to quit HBO than Prime.
This only goes so far, though
For years users have been subject to these pressures, watching the price of Prime rise all the while, and meanwhile other services are
getting better and better
Streaming services and exclusive content have multiplied, and Prime users are frequently left out in the cold.
Photo storage Isn&t that free
everywhere Twitch Prime Is that really useful for millions of working families Prime Originals Not exactly raking in the Emmys
It necessary.
The only one who can realistically break this deadlock is Walmart
Not by providing the same thing as Amazon, but by providing something simpler and more focused, taking over the workhorse duties of Prime
(shipping, sales, some basic media of opportunity) at a much lower price, granting the customer freedom to pursue their own choice in
subscriptions while not meaningfully affecting their online retail experience.
What would this Walmart offering consist of They already
offer free shipping on a lot of items, free store pickup, and so on
You don&t need to use your imagination here
What would make this better Free 2-day shipping on all items with no minimum amount; grocery and secure package delivery; a set of basic TV
and music streams or even just a partnership with a couple existing products; and lastly some in-store benefits like members-only promotions
and perhaps even early access on Black Friday
(Plus extra perks at sub-chains like Sam Club.)
Leveraging Walmart brick and mortar presence is important, but it hard to say what they have
the leeway to try there, as it likely a delicate balance
But it a major advantage to have regular visitors to major retail locations, whereas Amazon has to either home-deliver or install
lockers.
There are already indications this is happening — a pilot with a smart-lock company for home delivery, a rumored streaming
service, cashierless(ish) checkout (even easier with an account), revamping of existing grocery delivery partnerships, emphasis on cloning
or promoting existing services that match or exceed Amazon&s… it looks a lot like a shift to an end-to-end loyalty service.
Whoops:
SoftBank CEO reveals Walmart has acquired Flipkart
There are rumors of a Microsoft-powered standalone smart device, but that might conflict
with existing voice-ordering partnership with Google
Still, voice assistants are hot and Walmart needs an answer to Alexa if it wants to compete directly with Amazon in the living room
A possible acquisition of Shopify could conceivably broaden the company reach considerably as well.
How much would it cost I&d say if they
go about $50 per year they&re asking for trouble
It one of those magic numbers not just on its own, but in relation to Amazon $120 per year
$60 would be merely half price — $50, why that positively generous!
And the considerable savings opens up a bit of cash for secondary
subscriptions like Netflix, which ends up, ironically, causing consumers to lock themselves into Walmart just as they were with Amazon,
since once again they can&t switch easily! But they will almost certainly be getting more for their money.
Naturally $50 won&t pay for all
that stuff on Walmart side — but building brand loyalty on the scale of years, while sucking a customer from a competitor… that worth
spending a little cash for.
Timing-wise they&d want to announce this well ahead of the holidays — at least three months
First three months free if you sign up now and all that
It&ll be a big cash outlay but you don&t unseat a titan like Amazon on a shoestring budget
You do what it takes to put items in carts and go from there.
Walmart won&t risk its business on this, but it makes sense to do it now and
Walmart doesn&t get by on word of mouth — it needs a full court press ahead of Amazon busiest period, in which it can unequivocally say
&This is the better option for you
Switch now and you&ll never look back.&
The real question is: what will they call it MartLand WalSmart Or perhaps… Wal Street
