During quarter three of 2019, Amazon’s earnings declined by over 25% in comparison to the same period in 2018. For the first time in over three years, the tech giant’s profits witnessed a drop. Most of this is because the company heavily invested in its new free one-day shipping services for Prime members. However, as we head into the holiday period, this might be the perfect time to signup for the Amazon synchrony credit card.
The online retailer spent almost $800 billion between July and September of this year. Amazon had to relocate warehouses in order to effectively implement their one-day shipping services. In addition, the company plans to double their expenditures during the last three months of the year. While management didn’t mention anything about increasing costs, it is reasonable to expect that Amazon will possibly raise their prices in order to cover these expenses.
Regular shoppers, however, shouldn’t worry, especially with Amazon synchrony. The credit card’s offers and bonuses are likely to offset any price increases (if they happen). Just as importantly, the program, in itself, is much more competitive and rewarding when compared to other lines of credit.
Holiday Shopping Is Knocking on the Door
Last year, Amazon achieved record sales numbers during the holiday period. However, during this quarter, the company warned that their income is going to be lower than it was during the last three months of 2018. This is driven by extensive warehouse investments and hiring costs. In light of this, it makes sense to at least keep an eye out for potential price hikes.
The Amazon synchrony program, meanwhile, helps shoppers in many ways. For a start, you get a ten dollar bonus after signing up. Additionally, credit card users earn 5% in cash-back offerings. If they are Prime subscribers, shoppers will also enjoy Amazon’s one-day free shipping services.
Equally as noteworthy, the tech giant has an incredibly competitive credit card when we compare it to what’s available on the market. Amazon synchrony users incur no interest charges if they spend a certain amount during a given period, starting with $150 or more in the first six months.
Once you make consistent and on-time payments, Amazon synchrony will refund all your interest fees at the end of the period. Moreover, credit card holders do not have to pay any annual fees.
Above all else, consumers can build their credit by shopping on Amazon. This, combined with cash-back offers, bonuses, and nonexistent fees, makes Amazon synchrony even more desirable.
The Long Term
Many experts and analysts say that the company’s expenditures will largely benefit their long-term growth. This is undoubtedly true, regardless of whether Amazon raise their prices or not. One-day free shipping services are revolutionary and likely to change the retail industry, as a whole.
However, as buyers are getting ready for their holiday shopping (some already started), we must look at their immediate needs. The benefits of having an Amazon synchrony card are greatly useful, even if product prices stay the same.
Some might say that there are plenty of downsides to it. After all, if you miss a payment or submit it late, you will no longer be eligible for the interest rate refund. While this is true, late or missed payments on any line of credit will likely harm the consumer. Meanwhile, not many lenders provide the same benefits to buyers who make their payments on time. In most cases, they still have to pay interest.
Amazon Synchrony: A Good Idea
To many people, nothing is more ideal than being rewarded for shopping on Amazon. Through utilizing the retailer’s credit card services, consumers can access great deals, pay no interest expenses, and build their credit. Amazon synchrony is even more competitive than what most banks and companies offer.
As the holiday season is upon us, it is certainly worthwhile to consider this credit card.