Yesterday, Amazon announced that Prime members will now get 10% off hundreds of sale items at Whole Foods locations. Shoppers can simply access their Whole Foods app, sign into their Prime account, and scan the app at checkout.

These new perks for Amazon Prime members will be beneficial to both Amazon and Whole Foods. Whole Foods hopes to see a greater number of Prime members coming through its doors, while Amazon expects current Whole Foods shoppers to join Prime.
Scott Neslin, a marketing professor at Dartmouth, said, “Amazon’s goal is to increase Prime membership. They believe this locks in the customer and induces them to buy more from Amazon.” Gaining new Prime members is important since Amazon is raising the price of Prime from $99 to $119 per year. These new Whole Foods perks are likely to attract Whole Foods shoppers who have been considering Prime but have not made a decision yet.
Currently, only 2% of grocery sales are made at Whole Foods, so the company is trying to increase this number. Amazon already gives 5% cash back on purchases when they shop at Whole Foods and use the Amazon Prime Rewards Visa card. It will be interesting to see how these new Whole Foods and Prime perks play out for both companies.
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