Amazon.com Inc. (NASDAQ: AMZN) is now offering Prime members even more incentives after raising its annual fee by 20 percent. Beginning on Wednesday, Prime members will receive an additional 10 percent off sale items and weekly deep discounts on best-selling products.
The new promotion will launch at locations in Florida before expanding nationwide to all Whole Foods Market and Whole Foods Market 365 stores in the summer.
Amazon already offers its Prime members benefits at Whole Foods location such as free two-hour delivery on products, 5 percent cash back when using Amazon Prime Rewards Visa Card as well as other exclusive Prime rewards.
“By offering greater discounts on sale items, and exclusive deals like $10 off a pound for sustainable - sourced, wild-caught halibut, launching savings for Prime members is an amazing opportunity to bring our industry-leading quality standards and delicious food to more customers at a better price.” said John Mackey, Co-founder and CEO of Whole Foods Market.
Amazon will offer a weekly discount promotion beginning Wednesday until next Tuesday. Other discounted products include half off on cold brew coffee, buy one get one free sparkling water, save $2 per pound of strawberries and others. Members also receive an additional 10 percent on other items on sale throughout the store.
Customers can simply download the Whole Foods Market app and sign in with their Amazon account and scan the app’s Prime Code at checkout or opt in to use their phone number.
Whole Foods is in a highly competitive market with competitors such as Walmart (NYSE:WMT), Target (NYSE:TGT), Kroger (NYSE:KR) and Costco (NASDAQ:COST). Walmart and Target dominate the grocery shopping industry because they are both a one-stop shop for consumers, offering various miscellaneous products from home decor to outdoor products to clothing.
Morgan Stanley analysts say that the new perks could make Whole Foods cheaper than other brand name grocery chains for about 8 million of its customers who already use Prime.
Whole Foods has been trying to build a loyalty program for its customers, but with even more Prime incentives, it offers more benefits for customers. Although, many other grocery retailers are beginning to offer very similar incentives.
Despite still being overshadowed by its competitors, Whole Foods has potential to push through competition with its two hour delivery via Prime Now, which would be significantly faster than companies like Costco’s two day delivery.