Amazon adds new Prime benefit

Amazon (NASDAQ:AMZN) has added a new benefit for Prime members in the form of a discount on video games. The perk is poised to aid in retaining members, attracting new ones and getting existing shoppers to spend more.

Prime members will now receive 20 percent off pre-orders and games within the first two weeks of release. Amazon has been packing in the perks for Prime members, but this one is designed to appeal to hardcore gamers who purchase dozens of new games each year, reported The Motley Fool. A new game priced at $60 will yield a customer savings of $12. It won't take long for serious gamers to recoup the $99 annual membership fee.

The program lets Amazon compete more directly with Best Buy and GameStop, both of which have membership and loyalty programs aimed at this group. Regular video game buyers tend to skew younger as well, bringing more millennials into the Prime family, according to USA Today

Amazon Prime members spend more—roughly 140 percent more—with the retailer than non-Prime customers. More Prime perks are translating into more members and better retention for Amazon. A new report from Consumer Intelligence Research Partners estimates Amazon's Prime membership at nearly 54 million U.S. members. 

For more:
-See this USA Today story
-See this Motley Fool article

Related stories:
Amazon Marketplace grew 40% on Cyber Monday
Amazon captures 50% of retail sales growth
Inside Amazon's urban warehouse
Amazon Fire sales are on fire
51% of holiday shoppers will buy on Amazon