Amazon's 24-hour summer sale for Prime members, called Prime Day, appears to have been a major success for the online retailer.
Product orders exceeded that of last year's Black Friday sale which was open to all Amazon customers (not just Prime members), reports the company.
But the purpose of Prime Day wasn't so much about generating a large influx of revenue in the short term as it was about generating awareness about its members-only shopping program Prime.
Shoppers were able to participate in Prime Day without a subscription by signing up for a free trial, which allowed them to experience all of the shipping perks and discounts that members experience on a daily basis.
This story was originally sent to thousands of professionals in the e-commerce industry in this morning's E-COMMERCE INSIDER newsletter. You can join them -- sign up for a RISK FREE trial now »
In fact, Amazon likely lost money on Prime Day because of the steep discounts, but that risk could pay off in the long run by converting more shoppers to Prime memberships. Members of Prime who spend more money on Amazon on average than non-Prime members, according to a report from Millward Brown.Prime members spend about $1,500 with Amazon each year, while non-Prime members spend about $625 with the retailer annually. Prime members are also much less likely to shop at other retail websites in a single shopping session than non-members.
Here are other stories you need to know from today's E-COMMERCE INSIDER:HAIR CARE BRANDS ARE MISSING AN ENGAGEMENT OPPORTUNITY ON PINTEREST GROCERY E-COMMERCE IS PICKING UP IN CANADA COMPANIES IN THE NEWS
Find this article interesting? You can get it delivered to your inbox every weekday morning. Get the jump on your competitors. Try it RISK FREE now »
See Also:Retailers are launching a new generation of e-commerce membership programs modeled on 'Amazon Prime'Retailers are exploring fee-based programs like Amazon PrimePeople are making fun of how Amazon Prime Day features deals on random things like Tupperware and krill oil