Amazon on Tuesday introduced a new 10 percent discount on Whole Foods sales items.
CNBC, which first reported on a trial of the Whole Foods/Prime discount program earlier this month, cited an anonymous source who said 75 percent of Whole Foods shoppers are Prime members, but less than 20 percent of Prime members shop at Whole Foods.
The new Whole Foods offerings will expand the universe of Prime benefits and help keep customers in Amazon's ecosystem for mutually beneficial results.
Those customers, who pay an annual fee for benefits such as free two-day shipping and access to Amazon's video and music library, will now also get discounts at the upscale, organic supermarket that Amazon bought past year. They'll also get even deeper discounts on unique merchandise, such as 50 percent off magic mushroom powder and $10 off per pound of sustainably sourced, wild-caught halibut steaks.
Sucharita Kodali, an analyst at Forrester Research, said the discounts were likely to hurt the profit margins at Whole Foods - but that was besides the point if the move strengthens Prime, a major focus of Amazon these days.
The additional discount will apply to hundreds of products throughout the stores.
The Whole Foods location in Seattle's South Lake Union neighborhood, just blocks from Amazon's headquarters in Seattle. "Ours vision is thatevery day Prime makes your life better, easier and more fun, and shopping at Whole Foods Market with exclusive deals and savings is all of this and more".
"I think this is one of the most important launches we've had for Prime since Prime Video", Cem Sibay, vice president of Amazon Prime, said in an interview.
Amazon now has more than 100 million Prime members.
Amazon cut prices at Whole Foods for all customers once it completed its purchase of the chain in August, and announced another round of price cuts in November.