"With Prime, members get fast free shipping, as well as access to streaming video content and more. In short, there are benefits to being a Prime member, and they've helped drive adoption at Amazon."
"In the third quarter of 2024, Wayfair's net revenue was down 2% year over year, and it recorded a net loss of $74 million. The new rewards program lowers prices for members, which could negatively affect revenue."
"Management believes they make four to six additional purchases elsewhere in a given year. With the rewards program, it hopes these members will go from two purchases on Wayfair to at least three - an increase of 50%."
"That said, there are second-order benefits to the plan. Consider that if a customer pays the annual membership fee, this customer likely doesn't need advertising to make a purchase."
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