News & Analysis

CatchoftheDay launches Amazon Prime-style membership offering free delivery and priority dispatch

- October 26, 2015 2 MIN READ
Catch Group

Ecommerce company Catch Group has announced the launch of Club Catch, an Amazon Prime-style membership for its leading platform CatchoftheDay, that will give members access to discounts, free delivery, and prioritised dispatch for delivery within one to two days.

The membership, priced at $69 per year, has been operating in private beta for several months, with 20,000 of CatchoftheDay’s 2.7 million registered shoppers already signed up.

Catch Group is setting its sights high with the launch of the membership, with Gabby Leibovich, managing director of CatchoftheDay, saying that based on current sign-up numbers, the company expects Club Catch to surpass Costco as the premier buying club in the country by member numbers within a year and a half.

“Our goal is to build Australia’s most exciting, prominent retail group. Central to that is delivering greater choice and value to our members. Club Catch evolved from feedback we received from our customers indicating they would happily pay to be part of a membership-based shopping club in exchange for a number of key benefits, including quick delivery and access to quality brands,” Leibovich said.

“It is a win-win for the business and consumers as we can now reward loyal customers with a range of value enhancing initiatives in exchange for a small annual-membership fee which effectively pays for itself in the first order.”

The membership will work across CatchoftheDay, Mumgo and GroceryRun. In addition to free shipping on orders over $50 and priority dispatch, members will be given exclusive deals and early access to special events.

With Amazon Prime’s membership is estimated to be around 40 million users globally and Costco’s share of Australia’s $88 billion in supermarket revenue growing to 1.2 percent, or $1 billion, despite having just seven outlets open around the country, it is fair to say shoppers aren’t put off by membership fees – in fact, members often end up spending more. Catch Group found that club members were spending up to four times more than non-members across its sites.

The Catch Group stated that is is seeing 3000 members a week sign up to Club Catch, with this growth expected to continue as the weak Australian dollar makes shoppers think twice about buying online from foreign stores. Leibovich also believes that shoppers will stick to Australian stores as the government imposes the 10 percent GST on goods bought from overseas.

He said, “Our customers will face no price increases due to changes to the GST, as all our goods are sold and shipped from Australia.”

Image: Gabby Leibovich. Source: BRW.