Dec 07, 2016 08:57 AM EST

Amazon's Newest Grocery Store: Could There Have Been A Mistake?

Amazon is believed to have failed a move recently, particularly on their retail grocery stores called Amazon Go.

After the launch of their intriguingly convenient video about their newest grocery store, there has been news as to how the e-commerce store missed out on one important detail in business that might affect the store's overall success, reported USA Today.

Business Insider talks about this and refers to the Prime benefits as the "problem." Basically, the Prime annual membership of Amazon, that's been giving its consumers a lot of additional perks, is reported to be too exclusive. Because of this, non-Prime members have had no way of getting into this new project.

Naturally, there is a significant disparity between the cost of having Prime-exclusive benefits and having non-Prime-exclusive ones. Unfortunately, for the non-members, the reports say that Amazon Go will be Prime-exclusive.

According to Business Insider, Amazon may have missed out on the fact that the non-Prime members have a strong purchasing power that can affect the market margin too. But then again, business analyst John Blackledge forecasts that this would still relatively be quite a fair deal.

He noted that Amazon may only be taking this decision as an initial step and that in the next couple of months they will be opening their doors to the non-Prime members already. In his interview with the Insider, he says, "this might be a way to first expand their customer base and then over time, convert non-Prime members to Prime members."

This then ends with the non-Prime members happy and Amazon Go growing. If that is indeed the plan, then it only means that this move for expansion could still help Amazon finish on the 7th place of the top 20 e-commerce stores, which is not only fair but wise as well.

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
TRENDING ON THE WEB

Join the Conversation

Real Time Analytics