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“Integrated Retail” appears to be the new mantra for e-commerce companies, as the offline and online channels are being merged to offer a better customer experience. Amazon appears to be working in a similar direction, and after acquiring Whole Foods to expand in the grocery segment, the company introduced a new perk for its Prime members called Prime Wardrobe, with a goal to expand in the fashion retail segment. This feature allows Amazon’s Prime members to order clothes to try, and buy if they like them. The company is offering free shipping both ways and a seven day trial period at no additional subscription cost. This appears to be an attempt of the e-commerce giant to solve the complexities of buying clothes online, as many customers prefer to try them on before making a decision. Amazon is the largest seller of clothes online in the U.S. and is likely to achieve a market share of nearly 20% in the U.S. apparel market by 2020. With the introduction of Prime Wardrobe, the company can accelerate this growth and capture a larger market share. Further this can also lure more customers to buy clothes conveniently online instead of trying them out in crowded changing rooms. Another benefit of the introduction of the Prime Wardrobe is for Amazon to increase its loyal base of Prime members. Prime members are key sales drivers for Amazon, and by offering them interesting perks the company is able to retain and grow its large member base. As customers get hooked to the Amazon ecosystem and use its platform for all their digital needs, these initiatives work as catalysts for its entire business. Prime members are likely to drive revenues for all its retail products, and Prime Wardrobe provides another reason for them to stay on the Amazon platform. |