Alpha Resource Partners says online retail giant, Amazon ‘s decision to hike its Prime subscription price to $99 has prompted rivals to up the ante.
Shenzhen, China., March 21, 2014 - (PressReleasePoint) - Shenzhen-based Alpha Resource Partners has reported that Amazon’s decision to raise the subscription fee for its Prime shipping program is being seen as an opportunity for Alibaba-backed rival, ShopRunner.
Amazon’s price hike represents the first increase in the company’s nine year history and ShopRunner is taking advantage by offering less-than-pleased Amazon Prime customers their own Prime two-day delivery service for free for the first year.
“ShopRunner is definitely taking advantage of this development and the waiver of its usual $79 fee is a good start. Like Amazon, ShopRunner also deals with bricks & mortar retailers and can guarantee two-day shipping but clearly, Amazon didn’t hike its prices arbitrarily. Shipping costs have risen significantly and you can rest assured that if they’ve risen for Amazon, they’ve almost certainly risen for ShopRunner,” said an Alpha Resource Partners researcher.
ShopRunner, which partners with brick-and-mortar retailers to ensure two-day shipping, is launching a program waiving its normal $79 fee for a year for “disgruntled” Prime customers, said Fiona Dias, the company’s chief strategy officer.
In recent weeks, Amazon has aggressively targeted new retailers that ShopRunner would typically have arrangements with or be courting. The company has induced retailers to list their merchandise on Amazon’s website in exchange for the Prime shipping two-day delivery guarantee.
These retailers would pay Amazon a click-fee for shoppers who are subsequently redirected to their own websites to effect a purchase.
Alpha Resource Partners says it does not expect a mass exodus from Amazon citing the company’s strong goodwill and consistent track record for reliability.
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