Amazon Keeps (rightly) Pushing Loyalty Programs, Now It’s Shopbop’s Turn

Amazon Keeps (rightly) Pushing Loyalty Programs, Now It's Shopbop's Turn

Amazon keeps working hard at the fashion front to find out what works and what doesn‘t. After the new Echo Look and the end of the Style shows, now Shopbop, which Amazon took over in 2006, gets a makeover with one major new addition: a new loyalty program. The Observer:

The program will offer exclusive access to pre-sales, birthday discounts and invitations to various events. Chinese customers will have a new payment options, thanks to the introduction of Alipay.

All of these changes will be reflected on both the mobile and desktop version of the Shopbop site, including the mobile app. In fact, the mobile changes were designed first and then the rest trickled down. Shopbop, like many of their competitors, sees quite a large chunk of sales made from iPhones and Androids alike, but Penick was unable to disclose those exact figures.

This new loyalty program launched on September 7th and will be rolled out as an opt-in to all customers worldwide over the course of this month.

Retail Dive on the new loyalty program:

Shopbop has become well known within fashion circles — it’s familiar to Fashion Week followers and it’s a destination similar to Net-A-Porter. A new loyalty program aims to build on that. With no minimum spend to participate, customers now receive benefits like early access to new product and sales, birthday discounts, and invites to special events, among other perks.

Business of Fashion on the broader context for Amazon:

The Shopbop redesign comes as Amazon is ramping up its visibility within fashion via its own private labels, but it still has a way to go: yesterday, it was reported that Amazon was shuttering its private label Paris Sunday after only a few seasons, an indication of its restless and relentless strategy to achieve success in this field. Ownership of Shopbop allows Amazon a market share without the financial risks associated with launching a new label, in the same way its recent acquisition of Whole Foods offers some ownership of the grocery market.

Amazon has already started integrating services across its companies: Prime customers get free two-day shipping on Shopbop. It highlights Amazon’s intentions to further merge its brands — the traditionally offline Whole Foods is also set to launch e-commerce.

Amazon Fresh is already a loyalty program within the loyalty program Amazon Prime, which is an Amazon trend to keep an eye on.

Amazon keeps experimenting its way to a successful fashion business. As I said above, Amazon‘s Style Code Live Shows are already cancelled again. And also recently, Amazon killed BuyVIP as well. Thanks to being a large online retailer in the US and Europe, period, Amazon is also a large fashion online retailer in those markets. But that should not detract from the fact that Amazon is comparatively weak in fashion. (Especially in Europe the rise of Zalando and Asos etc. are evidence to that. Also, fashion is still fertile ground for many startups. Think Stitch Fix et al.)

Fashion is one category that keeps making visible the limits of Amazon‘s “we sell everything in more or less the same way” approach.

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