Amazon and Walmart Put Subscribers on Their Wish List in 2023

The holidays are here, and Walmart and Amazon are looking for ways to boost their subscription numbers. To do that, Walmart has teamed up with Disney+ to offer streamers a $40 discount on Walmart+. Meanwhile, Amazon is said to be in the testing phase for a fresh grocery subscription service, enabling Prime members to get unlimited grocery delivery on specific orders for an additional monthly fee.

Streaming Partnerships

In collaboration with Walmart, Disney+ is providing subscribers with a $40 discount on a one-year membership to the retailer’s subscription service, originally priced at $98. The promotion extends until Jan. 31 as part of the Disney+ Perks program, breaking away from the usual perks that are confined within Disney’s own ecosystem.

Walmart’s subscription includes complimentary grocery delivery, free shipping without minimum order requirement and fuel discounts, among other benefits.

The move comes as streaming services are collaborating with subscription partners both within and beyond their industry to distinguish themselves in the fiercely competitive pursuit of customer acquisition. With that, there is a rising trend of players in this space providing bundled packages, with talks of Apple and Paramount considering such arrangements. Disney+ is introducing a Hulu bundle as part of this trend.

Simultaneously, Peacock is partnering with grocery aggregator Instacart to boost adoption, aiming to secure the loyalty of Instacart’s audience through a subscription collaboration. Last month, the eGrocery company revealed that it would provide premium-level subscriptions to the streaming service to its Instacart+ members at no extra charge.

See also: Disney+ Offers Members $40 Discount on Walmart+ as Streamers Tap Partnerships

Amazon Looks to the Grocery Aisle

Meanwhile, Amazon is looking to solidify its position as a go-to destination for grocery shopping.

“We’re always experimenting with features to make shopping easier, faster and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” Tony Hoggett, head of Amazon’s physical stores business, told CNBC.

The company’s new trial grocery service will be accessible to Prime members in three cities: Denver, Colorado; Sacramento, California; and Columbus, Ohio.

At a monthly cost of $9.99, subscribers will gain privileges such as complimentary Amazon Fresh and Whole Foods deliveries for orders surpassing $35. They will also get 30-minute pickup for orders of any size.

As PYMNTS has reported, Amazon has been refining its fee structure for grocery delivery over the past few years. In October, the threshold for complimentary Fresh grocery delivery was reduced to orders over $100, down from the previous requirement of $150. Additionally, a $10 service fee for Whole Foods delivery orders was implemented in 2021 for Prime members.

According to the report, Amazon’s introduction of a grocery subscription service is geared toward encouraging larger and more frequent food orders from Prime members. Following its acquisition of Whole Foods Market in 2017, the company has been broadening its footprint in the grocery industry. This effort includes the establishment of its chain of Fresh supermarkets and ongoing initiatives to integrate online and brick-and-mortar grocery operations.

This recent development is also consistent with Amazon’s strategy to attract a more diverse range of consumers. Last month, the company extended Fresh grocery delivery to individuals without a Prime membership nationwide, following a trial period in specific cities.

Why Boosting Subscriptions Makes Sense

According to “The Replenish Economy: A Household Supply Deep Dive,” a PYMNTS Intelligence study produced in collaboration with sticky.io, the surge in retail subscriptions has resulted in a decline in traditional in-store shopping. About 42% of retail subscribers now visit physical stores less frequently due to their existing subscriptions, underscoring the significance for online retailers to develop adaptable and captivating online subscription experiences.

Leading this transition are millennials, with 40% of them depending on retail subscriptions for their shopping requirements. Within this generation, 39% of subscribers conduct most of or all their shopping through scheduled subscriptions.

The study underscores the importance of service quality in retaining subscribers, as a negative experience or inadequate service can lead to the loss of otherwise loyal customers. The report found that 17% of subscribers would terminate their subscription if the merchant couldn’t offer a refund for an unsatisfactory item.

Flexibility and control play pivotal roles in both attracting and retaining customers. As indicated by the study, 74% of retail subscription merchants have capitalized on this by allowing current subscribers to modify their plans at their discretion.

Read more: 15% of Consumers Buy Online to Control Time Spent Shopping