Amazon could be working on discounts to make it more attractive for Prime members to shop at Whole Foods.
The tech giant is developing a range of perks that Amazon Prime members will be able to take advantage of when they shop at Whole Foods, CNBC is reporting. Chief among the Amazon Prime perks will be a 10% discount on products that are already discounted. Amazon is also in the process of rolling out other discounts, including free delivery and cash back rewards when customers use their Amazon Visa rewards cards at Whole Foods store, the report says.
Since Amazon acquired Whole Foods last year, the company has been integrating its own concepts and services into the fresh food retailer. Whole Foods shoppers can buy Amazon hardware and Amazon is creating ways to make the Whole Foods shopping experience a bit more convenient.
Still, according to CNBC’s sources, Amazon sees a bit of a disconnect it’s trying to solve. About three-quarters of Whole Foods shoppers are also Amazon Prime subscribers, according to the report. However, just 20% of Amazon’s Prime subscribers actually shop at Whole Foods.
Moving to a model that rewards Amazon Prime subscribers for shopping at Whole Foods could be a way for Amazon to boost the latter figure. And that’s likely why the company is reportedly planning to focus its discounts on Amazon Prime subscribers rather than any other shopper.
The CNBC report comes after Whole Foods shoppers in Austin, Texas, noticed signs promoting a 10% discount for Amazon Prime subscribers back in March. The discount signs were up for a short period of time and ultimately taken down. One of them said Amazon Prime “members save an extra 10% on hundreds of sales prices.”
In addition to the Whole Foods perks, Amazon Prime gives customers free two-day shipping, access to Amazon’s streaming services, and a variety of discounts. Amazon recently announced plans to increase Prime’s price from $99 per year to $119 per year.