Amazon Moments: What Is It and How To Choose Rewards

By Tinuiti Team

Amazon is always looking for new ways to engage customers and brands alike. Look no further than their most recent initiatives, like Amazon Live and Amazon Scout.

Oftentimes, these efforts go beyond the function of a typical ecommerce marketplace, as Amazon strives to be a leader in several different spaces, from media and marketing to shipping.

One example? Amazon Moments. Here’s what you should know about this new offering from the ecommerce giant.

What is Amazon Moments?

 Illustration depicting Amazon Moments rewards

Amazon Moments is a marketing tool created by Amazon to allow brands to deliver physical and digital rewards to customers.

When customers complete a certain action on a brand’s app or website, Amazon delivers tailored rewards to those customers on behalf of the brand. Amazon Moments can be implemented on iOS, Android, FireOS (the proprietary operating system for Amazon’s Kindle Fire devices), and web.

How Does Amazon Moments Work?

Amazon Moments offers a lightweight API that developers can integrate with their app or website. When a user completes the desired action, the Moments API provides them with a reward URL to redeem their prize through Amazon.

For physical rewards, Amazon handles fulfillment from their warehouses. Rewards must be products or digital downloads already available for purchase on Amazon.

How Much Does Amazon Moments Cost?

Moments uses a cost-per-action (CPA) pricing model, allowing brands of all sizes to scale their customer loyalty programs through Moments based on their budget. So, the answer is… it depends! CPAs can be as low as $3, although many brands may find themselves spending more due to taxes, shipping, and other considerations. Brands can also set a firm spending limit to ensure they keep their budget under control, and Amazon caps total spend at $5,000 per campaign and $15,000 per Moments account.

It’s also worth noting that building a rewards program from the ground up can be cost-prohibitive, especially for smaller brands. According to reports, the Loyalty Programs Market in the U.S. will increase from $126,639 million in 2021 to reach $22,5907 million by 2026.

No matter what Amazon Moments costs, however, brands that use it effectively should come out ahead in the long-run. By rewarding the right actions, brands can improve customer engagement and conversions.

But while it’s expensive to retain customers, it’s even more expensive to lose them — it costs 5x more to acquire a new customer as it does to retain an existing one.

3 Benefits of Using Amazon Moments

Amazon Moments can be helpful to retail brands for a variety of reasons. We’ve narrowed it down to the top 3 below:

1. Encourage desirable customer behaviors

Moments enables brands to reward customers when they perform a commercially valuable action in an app or on a website, such as renewing a subscription or referring a new user.

According to Amazon, Moments has increased engagement for a variety of apps, including a 20x increase in the percentage of first-time payers.

2. Simplify your loyalty programs

Instead of having to set up a rewards program in-house, Moments allows brands to leverage Amazon’s product selection and fulfillment reach to offer rewards.

Brands and apps no longer have to be the middleman when providing rewards and gifts to their customers and users. Amazon’s global footprint allows brands to reward customers in over 100 countries.

“All the rewards that are part of the program are distributed through Amazon without the marketer having to worry about sourcing or the fulfillment of the rewards. Marketers only pay when they drive actions for their business.”

Amir Kabbara, Head of Amazon Moments (Source)

3. Protect against loyalty program abuse

An estimated $3.1 billion in redeemed loyalty points are deemed to be fraudulent, according to the Loyalty Security Association. Preventing fraud is no simple task, either. It’s difficult to protect customers from scammers, hackers, or simply selling their loyalty points online, especially on a tight budget.

Thankfully, sellers can lean on Amazon’s advanced technology to combat loyalty program abuse. In an effort to minimize abuse and fraud in these rewards programs, Amazon also claims that they have designed the tool to detect users who try to “game the system” for reward URLs.

Best Practices When Choosing Amazon Moments Rewards

As previously mentioned, brands that use the right Moments strategy are almost certain to overcome the costs associated with the program. But this poses a question: How can Amazon sellers build a great Moments program? It all starts with the right rewards – here’s how your brand can get started.

Choose appropriate awards

According to Amazon, customers convert better when a complete reward versus a discount is given. For example, customers prefer receiving a free $20 shirt rather than $20 off a shirt that is valued $40. Items such as electronics or toys are quite popular these days but ultimately it is recommended to run A/B tests to figure out which Moments reward is right for your audience.

Keep expense in mind

It is recommended that sellers select a CPA that is less than the lifetime value (LTV) of the customer segment. For example, if a lapsed payer is worth $200, you should set a CPA at $50.

Amazon also provides additional suggestions based on the seller’s objective, for example:


Use time limits to invoke a sense of urgency

In most cases, we want to make the shoppers’ experience as seamless and stress-free as possible. However, there are certain times when it is useful to invoke a sense of urgency – such as efforts to increase engagement. For example, by providing “limited time events”, users are encouraged to take action on a select opportunity before it runs out.

A/B test your chosen award

Don’t make any assumptions when it comes to knowing what your customers want or value. Let the data lead you! By running A/B tests on your chosen award, brands can figure out if their customers prefer a physical item as a reward versus a gift card.

Ensure your reward is driving ROI

Regardless of the reward program you choose, you should always be focused on driving performance and meeting your KPIs. According to Amazon, “Prioritize metrics important to your business goals. Examples include increasing payer conversion rate, increasing retention, or increasing participation in an event.”

Conclusion: Amazon Moments Takes Customer Loyalty Programs to the Next Level

Brands have to work harder than ever to stand out, increase customer retention, and build loyalty.

Customer loyalty programs were once a differentiator, but now they are incredibly common. In a 2022 survey conducted among consumers it was found U.S. consumers belonged to 16.6 loyalty programs. Brands need to make their loyalty programs stand out, or risk getting lost in the noise.

Tools like Amazon Moments promise exactly that. By using Amazon Moments, brands can easily create a unique and comprehensive rewards experience without having to build a loyalty program from scratch. Not only that, but it just may be the deciding factor in encouraging shoppers to choose you over a competitor.

Bottom line is this: The more engaged and invested customers feel invested in a brand and its rewards program, the more likely they are to make purchases and interact with the brand — and share it with their family and friends.  

Editor’s Note: This post was originally published in 2021 and has been updated for freshness, accuracy, and comprehensiveness.

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