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(Wired)   Amazon.com may soon drop the price on Prime   (wired.com) divider line 13
    More: Cool, Amazon, R.J. Hottovy, Morningstar, Kindle Fire, operating income  
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5321 clicks; posted to Business » on 13 Mar 2013 at 9:26 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-03-13 09:37:46 PM
2 votes:

Creative Name: Yeah, I'm sure they're gonna just leave all that money on the table.


Basically they make 700 dollars more a year from Prime members than non-Prime. The thought is to slash the prime fee (i.e. give up some money) to make a boatload of money.

To the Scrooge McDuck money pit.
2013-03-13 09:33:35 PM
2 votes:
"This company can make a lot less money", said no CEO ever
2013-03-14 01:29:15 PM
1 votes:
"But PRIME!"

farm9.staticflickr.com
2013-03-14 01:44:57 AM
1 votes:

ImpatientlyUnsympathetic: Yeah, judging by the Prime customers I know (my boss, a 20-something bachelor with two and a half jobs, in particular), they make boatloads from him. Metric boatloads even. We were joking around on a Friday and he ordered at least half a dozen things off of ThisisWhyI'mBroke's site (which linked to Amazon for those products.) Its so random and odd, but he and his roommate do massive Amazon orders for weird stuff that neither wants, like non-perishable food stuff - cereal straws? shelf-stable sandwiches? Just to order weird stuff. Because its one-click purchased and shipped.



It's like SkyMall for stoners.  I love it.
2013-03-14 12:35:38 AM
1 votes:
a4dzac: They might as well just drop it to $0...I'm sure most of the States will eventually win and the pressure to charge State sales tax will eventually come to fruition.

Even if they do, and I start getting charged NM sales tax on my purchases, I'll still buy a lot of stuff from Amazon, just because it is a hell of a lot easier to find what I want, and see reviews of the same product from others that have purchased it.  I'd gladly still pay 7.5% sales tax (that I would anyway) to save the pain in the ass of searching a bunch of merchants that may or may not have what I'm looking for.

Not to say that I don't shop locally...if I do know a local merchant does have something I need, I buy it from them. A lot of things fall in to that category. I just don't want to visit a bunch of stores on the off chance they -might- have it there at a reasonable price, when I know damn well Amazon has it and I can have it on my doorstep in a couple of days.
2013-03-14 12:17:26 AM
1 votes:
I buy a lot from Amazon; do nothing but Super Saver Shipping.
2013-03-14 12:05:37 AM
1 votes:
My biggest complaint about Amazon is their branded rewards card through Chase. I'm not sure what they're smoking over there at Chase, but that card has been one headache after another.

But hey, at least they're keeping the Indian call centers in business.
2013-03-13 11:39:30 PM
1 votes:

KarmicDisaster: I have Prime and use it a lot. However. I do think that a lot of time the Prime prices are jacked up to cover the shipping. You can get the same item for the same price or less elsewhere without the Prime shipping. IMHO.


Do you have any facts to back up that humble opinion?  Because when I type an item description into Google (which I don't think is trying to help Amazon) I almost always get the reverse results.  The item on Amazon is cheaper. I start shopping on Google, but I almost always wind up buying from Amazon. I've seen one product that was cheaper via Google than Amazon in the last three years, and I told Amazon the site and the price including S&H and taxes. I buy on Amazon every other day.  One slightly over-priced product in three years doesn't make a scam.
2013-03-13 10:48:59 PM
1 votes:
I've been a prime subscriber for ages.  Last year, Amazon was the biggest merchant on my Amex year-end statement.  I have zero problem with that.  I get free shipping on almost everything, and by far the best price on almost everything online (factoring in the low-cost or free shipping and absence of sales tax in FL).  I cancelled Netflix when I realized Amazon had about the same quantity and quality of free streaming video, so as far as I'm concerned Prime comes free.  I send myself a reminder on the first of the month to get a free "library book" for my Kindle.

What's amazed me most in the last two years is how much stuff I can get on Amazon.  Maybe through an affiliated (not eligible for free Prime shipping) seller, but Amazon has built the world's largest store that goes way beyond books.  I was renovating a condo last year and found a lot of the stuff (from shower doors to toilets) I needed at prices cheaper than Home Depot or Lowe's (again factoring in the no sales tax bit). I could find anything I wanted from the big box home repair stores at the same price on Amazon, and often cheaper, and without the hassle of driving to their stores and putting up with their "inventories" that never matched what they said they had online.  At one point, my contractor said he needed the garbage disposal asap.  It was on Amazon and eligible for Prime.  I could have driven the one-hour round trip to my local HD, which claimed to have it in stock, and wandered the corridors looking for it, or I could have done the obvious:  paid $3.99 for 1-day delivery via Amazon.

I just bought my new phone through Amazon's wireless site.   http://wireless.amazon.com/ .  My contract with my current phone co was finally up, and I got a better deal there than I did through my existing phone company on the same phone. I've been a customer of AT&T for ten straight years, but they decided to offer new customers a better deal than existing customers.  So,  fine, AT&T, I am now an ex-customer.

I'm pretty sure that at some point Amazon will lose the sales tax advantage it has over bricks & mortar stores, but it won't lose the convenience factor.  Never having to go to a Home Depot store again?  Priceless.
2013-03-13 10:18:43 PM
1 votes:
This probably won't happen as if this is like any other large company the Prime profit and loss ledger is separate from the amazon store P/L.  So while Prime people might buy more things that doesn't help the Prime team's numbers.  When there's 10M people using this service that's $800M.  Holy crap that's a large number.

Anyway the article spells it out: Amazon makes about $78 more a year in profit from Prime customers than non prime.  So they would be foolish to drop the price.

Also if you drop the price people might see its worth as zero.  Right now I'm paying $80/year and this might influence me to shop more on Amazon so I get my money's worth out of them.  If the cost was $0 I might think of shopping elsewhere.

Plus Prime has some little gotchas in it.  I have it and we get all our goods shipped for free.  I also can use it to stream movies.  My wife's Kindle however needs her own Prime account to get those features.
2013-03-13 10:18:42 PM
1 votes:
Prime is a no-brainer. Small items that I don't need today, but need in the next week or so? Click, click. Here in two days no shipping cost. Usually cheaper than running to the store.
2013-03-13 09:56:47 PM
1 votes:

HempHead: And:


I laughed way too hard at that. The Kindex Infant Energy Drink just put it over the top.

Well done.
2013-03-13 09:42:38 PM
1 votes:
Yeah, judging by the Prime customers I know (my boss, a 20-something bachelor with two and a half jobs, in particular), they make boatloads from him. Metric boatloads even. We were joking around on a Friday and he ordered at least half a dozen things off of ThisisWhyI'mBroke's site (which linked to Amazon for those products.) Its so random and odd, but he and his roommate do massive Amazon orders for weird stuff that neither wants, like non-perishable food stuff - cereal straws? shelf-stable sandwiches? Just to order weird stuff. Because its one-click purchased and shipped.
 
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