Amazon rivals react to ‘Prime Day’ with big July sales
The Boston Globe - 07/15/2015
Amazon had 41 million Prime members in the first quarter of 2015, according to estimates by Consumer Intelligence Research Partners. The market research firm said Prime members spend an average of $1,100 annually on the site, $400 more than other Amazon customers.
Prime Day “is not a reward to existing Prime members, and it’s not a general sale,” said Christo Wilson, a computer science professor with a focus on Web personalization at Northeastern University. “It’s all contingent upon Prime membership. In the end, it’s about bringing people into the Amazon ecosystem.”
But the service isn’t cheap for Amazon to provide. Free Prime shipping costs the company more than $1 billion a year, according to estimates by Forrester Research.