Social media has not been positive. Criticisms and complaints abound.
But both Amazon and third party sources seem to agree the promotion significantly increased traffic.
From TechCrunch:
Once the app is installed, the likelihood of a return visit -- and purchase -- is significantly increased. Once Amazon Prime is purchased, continued buying is seriously incentivized.
This is, among other things, a major supply chain play. Prime perquisites, such as free shipping, are sustainable as the Amazon fulfillment network is optimized. Especially in dense urban environments there is underutilized supply capacity to deploy at low marginal cost.
There is also evidence accumulating that Prime has been especially effective in driving third-party-sales, which benefits Amazon without increasing inventory cost.
Supply and demand networks are optimized by "owning" the demand channels in such a way that consumer patterns can be anticipated and effectively influenced.
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