11–20 of 151 posts
"82% of Prime members buy on Amazon even if the item is less expensive somewhere else" The supposed "source" referenced another study (sans link), so I can't get the answer to the obvious question: Was "less expensive" computed using the marginal cost to the customer of this particular purchase? Meaning, do other sites offer the widget for a few dollars less but charge a lot for 2nd day shipping? I'm a Prime customer…
"82% of Prime members buy on Amazon even if the item is less expensive somewhere else" The supposed "source" referenced another study (sans link), so I can't get the answer to the obvious question: Was "less expensive" computed using the marginal cost to the customer of this particular purchase? Meaning, do other sites offer the widget for a few dollars less but charge a lot for 2nd day shipping? I'm a Prime customer…
I have been surprised that Amazon has not vertically integrated into delivery and distribution. Imagine if they had bought DHL. They would have turned what must today be a huge variable cost into a largely fixed one. I don't have time to write about all the interesting innovations in distribution which could result from combining warehousing and delivery. Perhaps fears of antitrust lawsuits and hardball tactics from…
Consider that despite billions in investments, both DHL before they went away and FedEx Ground today are still not as good as UPS.
In the vast, vast majority of cases that I've price shopped elsewhere, Amazon is almost always the cheaper option. And if they're more expensive, it's generally by only a dollar or two (also depending on how their pricing algorithm is working that day - I've had times where I've checked in the morning, then come back to buy in the afternoon and there's a whole $5 difference). This leads to the phenomenon of, if you shop on Amazon a fair bit (which Prime's obviously do, but I bet a lot of other "non-Primes" do too), you will probably reach a point where you just quit spending the extra time to price-shop and just buy the thing you're looking for. You end up saving even more that way because you now have more time for other things.
All that to say - I think just identifying Prime members with this behavior is a little narrow in focus. My guess is that there are a whole lot of other customers who fit this pattern, but don't have Prime, and I bet there would be some value in pursuing that analysis deeper!
The only problem with Amazon Prime is that I sometimes annoy my officemates by ordering lots of random small items (thus, the UPS/FedEx guy ends up coming every day, sometimes multiple times, and covers my desk with small boxes...) Road flares, dish detergent, whipped cream chargers, ... lots of ORM-D stuff. Plus anything electronic or kitchen appliance.
Amazon generates 130% more business per subscriber just by losing a mere $11/subscriber. Those are numbers that anyone could salivate at.
It's easy to think of something I need, hit amazon, select prime eligible, and buy in a matter of 3 clicks...No worry about cost or when it will be at my door.
Amazon must have a pretty good deal going with UPS (& FedEx for next day air).