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[MoxManiac]

Amazon has started a new "premium" service; for the ultra-steep cost of $79 yearly, you get free 2-day shipping and overnight shipping for $3.99. Honestly, it sounds like a ripoff as I consider amazon's shipping charges expensive. However, I could see myself ordering a lot from them with free 2-day shipping, esp since I don't pay tax through them.

What do you guys think? I'm leaning towards rip-off, but free 2 day shipping with no minimum order is also nice.

 

[goodcow]

I posted about this the day it debuted.

I'm in love with the program... I'm making impulse purchases now without having to worry about a $25 minimum, AND I get them quickly.

Just about fifteen minutes ago I one-click ordered some Airborne as I have a cold, and I'll have it Tuesday with free shipping.

 

[MoxManiac]

So you think it's worth it if you would order a lot of stuff? I have to admit the idea of ordering something with no additional charges at that shipping speed is mighty tempting...

 

[goodcow]

So you think it's worth it if you would order a lot of stuff? I have to admit the idea of ordering something with no additional charges at that shipping speed is mighty tempting...

Last year I had about 130 orders with Amazon...

With no minimums and the ease of one-click two-day free shipping, I can easily see that reaching 200 orders this year.

For me it's definitely worth it. For others, it depends on how much they shop online. Personally, I try to, and do, purcahse everything I can online, including shampoo, deodorant, vitamins, toilet paper, soap, etc.

I find it cheaper to do this at Amazon, a hell of a lot more conveinent, and now with two-day shipping I don't even have to wait for things.

 

[StrikerObi]

So you think it's worth it if you would order a lot of stuff? I have to admit the idea of ordering something with no additional charges at that shipping speed is mighty tempting...

That's the point, it is worth if if you order a lot of stuff. 2-day shipping on Amazon is around $10. If you order 8 things in a YEAR then your shipping pays for itself. After 8 orders, you start saving money.

However, that's not Amazon's perogative. What Amazon Prime does is lock you into Amazon. Now i'm not saying that's a bad thing, because they are certainly a very good online retailer. Imagine you've got this Amazon Prime thing, well then why on Earth would you ever shop elseware online and pay for shipping? Amazon Prime is all about guaratneed future revenues.

It's also a good deal, if you buy a lot of stuff online.

 

[Kuroyume]

They should do this with Amazon Japan. That's where most of my internet orders come from. -_-

 

[Tarazet]

They should do this with Amazon Japan. That's where most of my internet orders come from. -_-

This brings up an interesting question, does this deal support international shipping? Probably not, but I have bought stuff from Amazon.co.uk before.

Edit: Nope, only the continental 48.

 

[goodcow]

That's the point, it is worth if if you order a lot of stuff. 2-day shipping on Amazon is around $10. If you order 8 things in a YEAR then your shipping pays for itself. After 8 orders, you start saving money.

However, that's not Amazon's perogative. What Amazon Prime does is lock you into Amazon. Now i'm not saying that's a bad thing, because they are certainly a very good online retailer. Imagine you've got this Amazon Prime thing, well then why on Earth would you ever shop elseware online and pay for shipping? Amazon Prime is all about guaratneed future revenues.

It's also a good deal, if you buy a lot of stuff online.

However I still think it's dangerous... yes, Amazon wants to lock you into Amazon.com forever. But the more you order from them, the more they pay in shipping costs, and with no minimums people can really hurt their profit margin.

I can get a $0.50 book shipped two-day, free. I can get a 60 pound monitor shipped overnight for $3.99.

Obviously both of those would be large losses.

So I guess it becomes a balancing act then between profit margins on items in the hope that all Prime members will purchase all their items from Amazon, and them grouping shipments together, and not, say, just buying a $5 book with free-two day, and doing something like that every few days.

 

[NotMSRP]

I know that businesses get special rates on postal services for being a huge volume customer. So the hit may not be as huge as you would think.

 

[StrikerObi]

However I still think it's dangerous... yes, Amazon wants to lock you into Amazon.com forever. But the more you order from them, the more they pay in shipping costs, and with no minimums people can really hurt their profit margin.

I can get a $0.50 book shipped two-day, free. I can get a 60 pound monitor shipped overnight for $3.99.

Obviously both of those would be large losses.

So I guess it becomes a balancing act then between profit margins on items in the hope that all Prime members will purchase all their items from Amazon, and them grouping shipments together, and not, say, just buying a $5 book with free-two day, and doing something like that every few days.

You don't think they did a major study to figure out how much they stood to gain by offering such a service? They wouldn't have implemented Amazon Prime if it wouldn't break it's own costs and then bring in new revenue.

Also, you can't get a 60 pound monitor shipped with this program.

We may exclude products in our discretion, including, for example, oversize or heavy items, items regulated as hazardous materials, and other items with special shipping characteristics.

As for a $0.50 book, so what? It's a minor loss that will be easily offset by other products bought by the customer at later or past dates. If that doesn't happen, so what? There will be tons of Amazon Prime customers raking in more money to make up for the one guy who broke the system.

 

[goodcow]

Also, you can't get a 60 pound monitor shipped with this program.

Yes you can. There's a 19 inch CRT I might buy for $180 and it qualifies for overnight $3.99 shipping.

 

[Tarazet]

Yes you can. There's a 19 inch CRT I might buy for $180 and it qualifies for overnight $3.99 shipping.

It won't be 60 pounds. Probably closer to 20.

 

[goodcow]

It won't be 60 pounds. Probably closer to 20.

http://www.amazon.com/exec/obidos/t...73302-2771969?v=glance&s=electronics&n=507846
Shipping weight: 52.0 pounds.

Add in the box, packing materials, etc. and it's nearly 60 pounds.

$3.99 overnight baby! OH YEAH!

 

[SKluck]

It won't be 60 pounds. Probably closer to 20.

Um... in what world does a 19" CRT weigh 20 pounds? And furry worlds don't count.

 

[B'z-chan]

damn now i see the value of getting this prime stuff. I might just have to sign up for it later. Goodcow i was wrong.

 

[border]

You don't think they did a major study to figure out how much they stood to gain by offering such a service? They wouldn't have implemented Amazon Prime if it wouldn't break it's own costs and then bring in new revenue.

They can take educated risks, but it's still going to be a risk. They don't know the extent to which people will abuse the system in practice.

It's not a guaranteed failure, but not a guaranteed success either. A lot of what they sell probably doesn't have a large enough profit margin to cover the cost of shipping.