Ending Soon! Save 33% on All Access

Amazon Prime Members Are Starting to Get Free Shipping on Other Websites The company wants to partner with fashion retailers to provide free one-day shipping for its prime-members.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Amazon is unveiling the gifts early this year for its Prime members. The company just announced that its $99-a-year membership program now comes with free, unlimited photo storage in the Amazon Cloud drive (great for the snap-happy among us), but the real news is that Amazon Prime's free-shipping benefits will start bleeding out to other shopping websites, a move that has been in the works for some time now.

This is Amazon's big play to make its membership program the "VIP pass for the web," according to Re/code. The idea is that Amazon membership perks will extend beyond its site, providing exclusive free-shipping deals at a host of big-name retail sites.

At the moment, the effects are small: The fashion brand All Saints will offer free, next-day shipping on its website -- which is faster than Amazon Prime's typical two-day free shipping -- to all Amazon Prime members, who sign in with their Amazon credentials on AllSaints.com. While Re/code reports that the ecommerce giant approached bigger names including Abercrombie & Fitch and Neiman Marcus, All Saints is the only online retailer that has agreed to the partnership so far.

Related: Is Amazon Making Peace With Its Retail Frenemies?

It's easy to see why Amazon is pushing this program – Prime members spend, on average, twice as much on the site as non-Prime members, and by adding free-shipping and other benefits (All Saints is apparently considering giving Prime customers a sneak peak at new products, along with exclusive access to clothing deals) from a list of popular online retailers, Amazon is making its membership considerably more enticing to a segment of online shoppers who haven't flocked to the service in the past.

Of course, first Amazon has to get retailers onboard, which could be a tough sell. Retailers have expressed concerns that the value of their brand will be washed-out by advertising on Amazon's site, while others are relunctant to grant the tech behemoth access to information about which items are popular with customers, Re/code reports. (Apparently, there's some nervous speculation that Amazon is looking to launch its own clothing line).

From All Saints' perspective, however, the deal with Amazon is a win – so far, the partnership has increased sales and reduced check-out times, an executive at the fashion brand told Re/code.

If Amazon can convince more big retailers to adopt a similar mindset, it will be getting its foot in the door of the $174 billion apparel industry.

Related: Your Amazon Prime Subscription May Get More Expensive

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.

Business Ideas

87 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.

Marketing

5 Steps to Preparing an Engaging Industry Presentation

You can make a great impression and generate interest with an exciting, informative presentation. Find out my five secrets to creating an industry presentation guaranteed to wow.