Amazon is using its Priceline partnership to leverage Prime Day travel spending

Amazon Prime Day is here, and the eCommerce giant is determined to engage Prime members and boost spending. With lofty aspirations, Amazon is aiming to surpass its Prime Day in 2022, during which it sold more than 300 million products worldwide.

While the strategy to attract customers during an economic crisis may seem risky, Amazon faced its own challenges during last year’s Prime Day event, including inflationary pressures. According to PYMNTS Prime Day 2022 ReportIn a study of 3,245 consumers, median spending during Prime Day 2022 increased 40% to $175.

Moreover, Prime members who said they were living paycheck to paycheck and struggling to make ends meet increased their Prime Day spending. Their average receipts saw an increase of $48 from the previous year, but this increase reflected a focus on strategic opportunity seeking rather than self-indulgent madness. It indicated that these members carefully searched for the best deals, prioritizing their limited budgets and making strategic purchasing decisions.

As a result of these strategic choices, while there was a decline in purchases of big-ticket items, Prime members showed a greater preference for purchasing electronics over groceries, with only 23% of shoppers choosing to purchase groceries, and 31% of shoppers choosing to purchase groceries. for electronics.

This year, Amazon is looking to improve its value proposition for Amazon customers and prospects. The company is allowing non-Amazon Prime customers to sign up for a 30-day trial to take advantage of the deal.

Amazon is also offering an additional 6% discount to Amazon Prime cardholders on purchases. Those who want to take advantage of this discount can apply for the card and enjoy the savings. The move is in response to the current economic climate, where 33% of cardholders have increased their reliance on credit cards in the past six months amid increased inflation.

Read more: Generation Z, Millennials use credit cards 30% more often than the average cardholder

In addition to anticipated discounts on popular online products, from Kindle and Apple devices to home gadgets, Amazon is also venturing into various areas to expand “The Amazon effect.”

Amazon expands its tourist offer

For Prime Day this year, Amazon has partnered with travel booking site Priceline to offer exclusive discounts.

While Priceline already advertises its products on Amazon’s audio and streaming platforms, its involvement in Prime Day marks Amazon’s first time partnering with a U.S. travel agency to offer travel benefits during one of the biggest sales events of the year.

“We want to meet customers where they are. We know travelers shop on Amazon and book travel through Priceline.” he said Lesley KleinSenior Vice President of Marketing at Priceline.

Priceline’s parent company, Booking Holdings, has already offered Prime Day hotel deals in several other countries. This year, Booking.com gave Prime members in Austria and Germany exclusive access to travel credits and discounts specifically for 2023 and 2024 travel.

Despite declining retail spending, American consumers remained willing to invest in activities such as travel, leading to a joint effort by Amazon and Priceline.

As part of the partnership, Amazon is offering an additional 20% off Priceline Hotel Express deals. To qualify for the offer, customers must make a minimum purchase of $300 and can expect a maximum savings of $75.

Small businesses in the spotlight

In a recent interview with PYMNTS Claire O’DonnellDirector of Selling Partner Empowerment, Communities & Trust at Amazon, discussed the new goal of Prime Day: empowering transactions by small and medium-sized businesses (SMBs).

O’Donnell noted a noticeable shift in customer behavior, with a growing trend toward purchasing consistent with personal values, particularly among younger consumers. There is also a strong inclination to support small businesses. In response, Amazon has implemented initiatives to improve the visibility and shopping experience for small businesses, with the goal of meeting these preferences.

Customers now have the ability to narrow their search on the Prime Deals page, specifically focusing on deals offered by small businesses. Additionally, last year Amazon introduced the Small Business badge, allowing customers to easily identify small business products when browsing the Amazon platform. This badge will be highly visible in search results and on product pages, serving as a clear indicator of products from small businesses.

Read more: Amazon says Prime Day 2023 will put a spotlight on small businesses

Traffic to stationary stores

In a press release issued July 6Amazon has announced that Amazon Prime members are eligible for discounts on grocery and fashion purchases in brick-and-mortar stores.

“Are you curious about our stores?” Amazon said in a statement. “We have a lot of different customers with a lot of different needs and it’s our job to meet them where they are. We do this through our stores – The Entire Food Market, Fresh Amazons, Amazon Go AND Amazon style – each offering a unique value proposition, an unrivaled selection of brands and a variety of ways to shop.”

As an example of the offers available, Prime members who make a purchase of $50 or more at Amazon Fresh stores receive 25% off their in-store purchases during Prime Day. Additionally, Prime Visa members with a qualifying Prime membership can earn 6% cash back when they use their card to make purchases at Amazon Fresh on Prime Day.

At Amazon Go stores, Prime members who spend $10 will receive $5 to use on their next visit. Additionally, Prime members visiting the Amazon Style store can enjoy an additional 20% discount, saving up to 70% on Prime Day deals.

Whole Foods Market is participating in Prime Day. Prime Visa cardholders can earn 6% cash back (5% all year) on purchases at Whole Foods Market.

Prime members shopping at Whole Foods Market can also receive an additional 10% off hundreds of sale items in the store. Additionally, Whole Foods Market offers deals like 35% off ice cream and frozen desserts, among other offers.