Why would someone choose to purchase fresh cut flowers through Amazon Prime rather than through other online vendors?
People choose to purchase flowers through Amazon prime rather than other online vendors factors include, who the average buyer of flowers are, the rating of flowers that are bought through Amazon and the advantages and disadvantages of Amazon compared to another online delivery service. The benefits that Amazon members receive, and how Amazon's advertising brings them closer to purchasers of flowers are two additional factors. Amazon is not the leading online retailer of fresh cut flowers, yet, they do conquer the market in a global sense. Due to their lower prices, they are able to compete with other sellers.
THE AVERAGE BUYER OF FLOWERS
More than 40 percent of people buy flowers three or four times a year. The majority of people who buy flowers are from the baby boomer generation. They purchase flowers once a week or once every two weeks on average. In comparison, millennial flower shoppers tend to spend less than $50 every year on flowers. The majority of baby boomers are not going on the internet or on an app to purchase flowers as they are more likely to go to a super market or florist to purchase a bouquet. In contrast, the millennials who do purchase flowers tend to buy a single flower as opposed to a bouquet. But millennials, along with generation X, are more likely to have an Amazon prime account than baby boomers. Amazon Prime memberships offer the consumer discounts or free shipping, lowering the cost of purchasing flowers on-line.
Among other top on-line competitors in fresh cut flower sales, Amazon Prime ranks third, behind Teleflora and From You Flowers. Teleflora allows their customers to order up until 3pm on the day of delivery and From You Flowers allows their customers to customize the vases of the bouquets that they order. Some reviews reveal that Amazon's fresh delivery service items are cheaper than FreshDirect. Customers also stated that while there is a subscription fee for Amazon Prime and not one for FreshDirect, it was worth it because they received more than the subscription fee amount back in savings compared to their competitors in the market of online fresh delivery.
Amazon Prime's fresh flowers are ranked third because there is not a delivery-fee. This seems to be a reoccurring theme of why people choose to purchase fresh cut flowers through Amazon Prime rather than other online vendors.
BENEFITS OF AMAZON PRIME MEMBERS
Amazon Prime members pay $99 a year or $10.99 a month and in return receive 2-day free shipping and streaming of music, movies, and TV shows. Prime also offers same day delivery for many items and 2-hour delivery for groceries and food from the nearby area. Another reason that people are willing to try Prime is because they offer a 3-month free trial and a full refund for any member who does not take advantage of the benefits.
ADVERTISING AND STRATEGY
"Amazon Prime uses the High/Low pricing model to take the sting out of delivery charges." The idea behind this pricing model began when Amazon noticed that people were starting to take things out of their online carts when presented with a delivery fee. In order to solve this problem, they started offering low delivery charges. In a Prime members' case, "low" is equal to free. Then Amazon added a high yearly membership charge for members of Prime, which comes to $99 a year. In response, Amazon has been able to get more customers who place orders quite often. According to Beyond Cost Plus, flower businesses should be willing to drop the delivery fee from on-line orders since Amazon Prime is offering delivery for free to their customers. Some people are okay with delivery charges here and there, such as for occasions like buying flowers. But as Prime memberships increase and the opportunity to get flowers delivered for free becomes available to all members, on-line flower companies may start to see a decrease in business. Amazon first started promoting the free-flower delivery on Valentines Day. This worked well considering so many people buy flowers on Valentines Day and the delivery charge is dropped. People took advantage of this opportunity. This was a perfect day to launch this because many people are searching for flowers to order on Valentines Day. So, Amazon was able to get the word out to the most amount of people in a short time.
More people are buying Amazon Prime memberships, and as a result, more people have access to free delivery on a multitude of items, not just flowers. The availability of free and fast delivery of flowers through Amazon Prime, alongside excellent marketing, is influencing how people buy flowers from Amazon.