Amazon extends Prime credit card benefits to Whole Foods purchases — GeekWire

Amazon extends Prime credit card benefits to Whole Foods purchases — GeekWire

The company is hoping that the perks will get more Prime members shopping from Whole Foods, and get existing customers to shop more frequently. This week's announcement marks another big step, and likely not the last.

The U.S. e-commerce giant launched the the Amazon Rewards Visa Card a year ago.

Amazon cardholders who get the reward points at Whole Foods stores can either convert them into a statement credit, or redeem it online to spend at the Amazon site or other eligible sites.

Today the company announced that it will offer 5% cash back on Whole Foods purchases made with the Amazon Prime Visa Rewards card. Both of these cards offer 2 percent back at restaurants, gas stations and drugstores, and 1 percent on all other purchases. Plus, it's planning to make Prime the rewards program at Whole Foods stores. Plus, it'll help Whole Foods turn out more of Amazon's core base of shoppers.

Cardholders who aren't Prime members aren't being left out in the cold entirely, though. It nearly immediately made good on those promises with store-wide price cuts, and has offered seasonal discounts on things like Thanksgiving turkeys and Valentine's roses. Amazon also likely saves some money on credit card fees when Whole Foods customers pay with one of its branded cards than with another credit card. Amazon earlier this month rolled out free, two-hour deliveries to Prime members from the grocery chain's locations in Austin, Cincinnati, Dallas and Virginia Beach. The e-commerce titan has been cutting prices and even began selling its Echo smart speaker device in Whole Foods stores. Amazon will offer 3% cash back on all Whole Foods purchases to those who don't have a subscription to Prime, so while it may not be as good as 5%, it's still a significant amount of cash back. Workers say a new inventory management system called order-to-shelf, or OTS, has led to food shortages within the outlets. Further, several employees at Whole Foods complained about the retailer crushing their morale with new procedures, according to Business Insider.

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