Amazon (NASDAQ:AMZN) is reportedly testing a new feature on its app called "Buy Again," which aims to encourage users to make repeat purchases, according to a report in the Wall Street Journal.
This feature is part of Amazon's strategy to generate more revenue from its existing customer base. The "Buy Again" feed is featured prominently on the home page of the app and uses a customer's order history to provide recommendations, particularly in categories like groceries and electronics.
Amazon has faced challenges in recent years with slower growth in Prime memberships and reduced spending from its users. To address this, the company is striving to guide customers towards more frequent purchases and promote subscription-based ordering through the "Subscribe & Save" feature.
To encourage repeat orders, Amazon has previously used its Alexa assistant to suggest order options based on customers' order history. Promoting the subscription service can further cement Amazon's presence in users' lives and boost revenue from existing customers.
The rollout and future refinement of Amazon's "Buy Again" feature are still uncertain. Amazon has not confirmed whether it will make this tab available to all customers, and there may be changes made to it before an official launch.
Moreover, the effectiveness of the recommendation tool remains to be seen, as not all items on the site are conducive to repeat purchases. While Amazon does have a "Buy Again" and subscription option on its website, it doesn't always have a prominent placement.
Many customers can access similar information through the app, but it often requires navigating through multiple steps to reach this section.