Amazon.com Inc. (NASDAQ: AMZN) has joined the army of retailers that have launched special sales as part of the lead up to Super Bowl 50. The e-commerce giant’s management decided to focus on discounts for a relatively new service it calls “Prime Now.” The service has been set up as a combination of the traditional Prime benefits, which include access to a board list of streaming video titles and free delivery of packages. Prime Now adds rapid delivery of products, which can take as little as two hours.
The Prime Now Super Bowl promotion includes a $10 discount to the normal price. Only first-time customers get the discount. The $10 offer only applies to a small number of products and services. For the Super Bowl, these are mostly food and, not surprisingly, Amazon’s own electronics.
Amazon needs something to act as a counter to deep discounts offered by Best Buy Co. Inc. (NYSE: BBY) for Super Bowl Sunday. The Best Buy promotions focus on items much more expensive than an Amazon Prime Now deal. Best Buy pushes HDTV products, some of which have prices as high as $1,999 for a Samsung 65″ LED screen. Customers can pick up the TV at stores, for free, which does not seem like a very good deal.
Investors’ worry about these discounts across many retailers focuses on whether they lose the retailer’s money and might be part of a way to build loyalty with consumers. Super Bowl Sunday may bring in customers who leave once the game has ended.
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