With the aim of turning the living room into a fitting room, Amazon.com, the top e-tailer has introduced a new service called Prime Wardrobe, according to an ET report. Part of the Amazon Prime shopping club, the new service will allow members to order three or more items without paying for them up front. Customers will have a week after receiving their shipment to decide which items they want to buy and which they want to return before being charged.New forayIt is the latest foray by Amazon into apparel and groceries, categories that have been slower to shift online. Recently, Amazon said it would buy grocer Whole Foods Market for $13.7 billion, an aggressive step into the brick-and-mortar retail world and potentially a strategy for getting products to urban customers' doorsteps faster, noted the report.Prime Wardrobe represents another way Amazon is encouraging people to sign up for Prime, it's $99-per-year programme that includes two-day shipping and streaming video. What is more, the e-commerce behemoth has found that assuming these extra costs is worth it because Prime members buy more goods, more often on Amazon.Surging apparel sales are already helping Amazon challenge Macy's as the dominant retailer in the category. Prime Wardrobe may add further pressure, noted the report.Morningstar analyst Bridget Weishaar told ET, "If I were Macy's, I'd be scared by this. Amazon is offering a very convenient way to avoid going to stores. Experience-driven millennials are happy to skip the trip.”
Prime Wardrobe ProgrammeThe Prime Wardrobe programme includes in excess of a million items from shoes to accessories and clothing. Shoppers receive a 20% discount when they keep five or more items. Items are shipped in a resealable box with a prepaid label for returns. Brands include Calvin Klein, Hugo Boss, Adidas, Levi's, and possibly Amazon's private-label clothing - and the Prime Wardrobe program may be key for growing shoppers' awareness of this, Weishaar said.The programme is perhaps a play by Amazon for data, too. Like Amazon's voice-controlled camera, the Echo Look, and an accompanying app that recommends which of two outfits is best, Prime Wardrobe has the potential to offer the retailer insights on which fits and styles shoppers prefer, the report pointed out. The service is similar to a number of "try-before-you-buy" services including Stitch Fix and Trunk Club, which is part of Nordstrom.Amazon Prime Meanwhile, Amazon Prime also has plans to ramp up its India offerings, a year after it forayed into the programme with an introductory price of Rs 499. The subscription-based programme, which saw membership triple from January-June 2017, plans to include benefits such as event ticketing and cash backs through the Amazon Pay wallet, says the report.Akshay Sahi, Head of Prime in India said, "We want to serve all customer needs from shopping, family, video and any other entertainment needs they might have. Furthermore, the number of products under Prime has increased 70% to two million since the launch of the programme which guarantees one-day delivery in 100 cities.”Sandy Shen, Research Director at Gartner said, "The multiple services provided enhance the customer experience for Amazon, a key differentiator in the e-commerce market where many businesses compete on price only, which is not a sustainable strategy in the long run. Amazon can position itself as the destination for a variety of services, which increase the customer loyalty and its margin.”Order bookOrders from Prime customers contribute up to 30% of the orders on the Amazon India platform, with 50-60% orders for Amazon Pantry, the FMCG goods service.According to information written on firstpost.com - “Amazon Prime, which entered countries including Mexico, Netherlands, Luxembourg, and Singapore last year, now is present in 16 countries around the world. Shares of the Seattle, Washington based company were up 1.5 percent at $1,187 in afternoon trading”