Amazon Chasing Generation Z Consumers (Teenagers)
Recently we published a story about Amazon exploring the potential for creating a checking account style product possibly in conjunction with JP Morgan Chase & Co.
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The original idea appeared to be an extension to market to consumers that are considered the unbanked or underbanked. This includes every group from day laborers to folks who do not trust banks.
But as more products become available online and harder to find in local retail stores, there is a need for those consumers to be able to purchase these products.
Amazon Cash, really part of the Amazon gift card feature available in all Amazon accounts has been the way around to find those consumers. But it is clunky and could use a bit more streamlining.
Completing the Journey
But there could be another reason for the desire of Amazon to expand its Amazon Cash program to become part of a checking-account style product; Teenagers!
Amazon already offers discounts to college students on Prime Memberships, it allows public and private high schools and activity groups within those schools to open Amazon Smile referral accounts where parents and students can purchase from Amazon and the receiving entity gets a percentage of all sales.
Building a lifetime Amazon customer could start a lot earlier now if Amazon follows through with its checking-account style program.
The goal may be to allow younger teenagers to sign up on Amazon and fund their accounts from part-time jobs working in the grocery store to pet and babysitting monies received from friends and neighbors.
And the drive to gain the trust of the younger generation early may be driven by fashion. With having a huge lead in online fashion sales among Millennials, there is a good reason to believe the company has to shore up that lead by bringing a younger audience to its site.
Big names are dominating the online sector, but Amazon continues to bring out its own brands to provide more products to its customers.
Third party sellers with a good track record on Amazon may qualify to even to receive loans from Amazon to help build their brands.
Once thought as the most difficult retail segment to crack, fashion is quickly turning into a huge opportunity for small businesses, and large brands are making new deals to be on Amazon when in the past they shunned the retailer.
Amazon may realize to continue its success in fashion, it must court a younger audience.
And marketers know that the younger a person trusts a retailer, the longer they will stay a lifelong customer. Afterall, it is less expensive to market to a “convert” than to attract a new customer.
Offering a simple teenager branded or focused checking-account style product could be part of the strategy to forge that long term relationship. And that is only good news for third-party merchants selling on Amazon.
Do you sell fashion items and are you using Amazon as one of your sales channels? Head over to our Facebook Discussion Group or use the comments section below.
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Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.