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LEADERSHIP STRATEGYWhy Amazon Wants To Sell Vacuum CleanersShep HykenContributorAug 14, 2022,08:00am EDTLARKSPUR, CALIFORNIA - AUGUST 05: Amazon announced[+]GETTY IMAGES
It was recently announced that Amazon.com would be acquiring iRobot, the maker of the Roomba vacuum cleaner. There are still some “hoops” to jump through, such as shareholder and regulatory approval, but the deal looks promising. So, why does Amazon want to get into the vacuum cleaner business?
It doesn’t!
At least not for the purpose of simply selling vacuum cleaners. What it wants to do is to get further entrenched into the daily lives of its customers, and Amazon has done an excellent job of just that. There are more than 200 million Amazon Prime members, and 157.4 million of them are in the United States. According to an article in USA Today, written by David Chang of the Motley Fool, Amazon Prime members spend an average of $1,400 per year. Non-Amazon Prime members spend about $600 per year.
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LEADERSHIP STRATEGYWhy Amazon Wants To Sell Vacuum CleanersShep HykenContributorAug 14, 2022,08:00am EDTLARKSPUR, CALIFORNIA - AUGUST 05: Amazon announced[+]GETTY IMAGES
It was recently announced that Amazon.com would be acquiring iRobot, the maker of the Roomba vacuum cleaner. There are still some “hoops” to jump through, such as shareholder and regulatory approval, but the deal looks promising. So, why does Amazon want to get into the vacuum cleaner business?
It doesn’t!
At least not for the purpose of simply selling vacuum cleaners. What it wants to do is to get further entrenched into the daily lives of its customers, and Amazon has done an excellent job of just that. There are more than 200 million Amazon Prime members, and 157.4 million of them are in the United States. According to an article in USA Today, written by David Chang of the Motley Fool, Amazon Prime members spend an average of $1,400 per year. Non-Amazon Prime members spend about $600 per year.
Want more numbers? According to a 2022Feedvisor survey of 2,000-plus U.S. consumers, 56% visit Amazon daily or at least a few times a week, which is up from 47% in 2019. But visiting isn’t enough. Forty-seven percent of consumers make a purchase on Amazon at least once a week. Eight percent make purchases almost every day.
Amazon has become a major part of our lives. And does a vacuum cleaner company do this? Not really, unless it’s iRobot’s vacuum cleaner. A little history about iRobot might shed light on why Amazon is interested in this acquisition
iRobot was founded in 1990 by three members of MIT’s Artificial Intelligence Lab. Originally their robots were used for space exploration and military defense. About ten years later, they moved into the consumer world with the Roomba vacuum cleaners. In 2016 they spun off the defense business and turned their focus to consumer products.