If i'm buying something online, chances are regardless if the price is the same (usually its cheaper), i'll get it through Amazon. Partly because I have prime, but also because I know these guys will guarantee every part of the transaction is quick, and flawless.
But if they start making mistakes, moving to someone else is pretty easy. I think they realize there's no lock in (well right now...)
I signed up for Prime the day it was introduced, and a sizable portion of my income gets dumped onto Amazon. I would think that there are a sizable number of people like us who pay a small premium for the convenience, quality and selection. I don't think they've ever stated publicly if they make money on Prime customers (ie I buy a ton, but they have to take a bath when I two-day ship mouthwash).
Prime, until recently, was a fun way to have very large items next-day aired to you (lawnmowers, sheds, etc) for $3.99. They recently wised up to that, but I always wondered why they let that slip in the first place.
I don't have the source handy, but I recall they said that that something like 99% of direct prime fee goes to paying for the video content.
Where they make there money is in the shift in purchasing habits. Prime users spend something like eight times as much money as non prime users. They make their money back because of the large increase of purchase. Overall, the net something like $3/year/prime user.
I've been buying a decent amount of furniture lately with Prime for free shipping. Not 2 day but still, getting 60 pound stuff shipped for free has surely got to cost them.
Comments
If i'm buying something online, chances are regardless if the price is the same (usually its cheaper), i'll get it through Amazon. Partly because I have prime, but also because I know these guys will guarantee every part of the transaction is quick, and flawless.
But if they start making mistakes, moving to someone else is pretty easy. I think they realize there's no lock in (well right now...)
I signed up for Prime the day it was introduced, and a sizable portion of my income gets dumped onto Amazon. I would think that there are a sizable number of people like us who pay a small premium for the convenience, quality and selection. I don't think they've ever stated publicly if they make money on Prime customers (ie I buy a ton, but they have to take a bath when I two-day ship mouthwash).
Prime, until recently, was a fun way to have very large items next-day aired to you (lawnmowers, sheds, etc) for $3.99. They recently wised up to that, but I always wondered why they let that slip in the first place.
I don't have the source handy, but I recall they said that that something like 99% of direct prime fee goes to paying for the video content.
Where they make there money is in the shift in purchasing habits. Prime users spend something like eight times as much money as non prime users. They make their money back because of the large increase of purchase. Overall, the net something like $3/year/prime user.
That makes sense. It's funny because their Prime VOD selection still isn't comparable to Netflix, so I never use it.
Their likely too busy making money hand over fist on EC2.
I've been buying a decent amount of furniture lately with Prime for free shipping. Not 2 day but still, getting 60 pound stuff shipped for free has surely got to cost them.
I try to be nice to them - if I don't need it right away I'll pick the slower shipping.
I wish I could do that, but most of the time Amazon won't ship to my Australian address at all. It seems to be mostly the 3rd party sellers, though.
Double for your cousins in NZ