If you use AmazonPrime, you probably are already familiar with their highly unpopular price hike.
This hike has not only ticked off customers but also emboldened competition.
In fact, ShopRunner, an Amazon competitor will match Prime’s previous price and give customers free two-day shipping for a year if you can prove you once subscribed to the Amazon service.
Get ready Amazon, this could be a long quarter…
With today’s announced price increase to Amazon’s Prime shipping program, rival ShopRunner smells blood in the water.
ShopRunner, which partners with brick-and-mortar retailers to ensure two-day shipping, is launching a program waiving its normal $79 fee for a year for “disgruntled” Prime customers, said Fiona Dias, the company’s chief strategy officer.
Adding insult to its offer, the new ShopRunner site’s URL is www.shoprunner.com/prime. It goes live at 3 p.m. ET.
ShopRunner, which is backed by Chinese web retail giant Alibaba as well as American Express, will require Prime customers to prove their membership to get the one-year discount, Dias said.
Amazon said Thursday it is boosting its Prime membership by $20 to $99 annually — the first price increase in its nine-year history. The company blamed rising shipping costs for the change.
ShopRunner guarantees two-day delivery for several dozen retailers, like Neiman Marcus and Tommy Hilfiger, in competition with Amazon. Dias said ShopRunner has more than a million members, though she declined to be more specific.
“We certainly don’t want to miss this opportunity to remind people of the many great brands that ShopRunner offers with unlimited two-day shipping,” said Dias.
Amazon has lately been gunning for ShopRunner. In recent weeks it has held holding talks with retailers that otherwise don’t list their merchandise on Amazon.com to display their wares in exchange for the Prime shipping guarantee. These merchants would pay Amazon a fee for customers who are then redirected to their websites to make a purchase.