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Amazon Prime members buy twice as much, don't compare on price

lukew.com

31–40 of 151 posts

Re: Amazon Prime members buy twice as much, don't compare on price

#31
post #20

My sister gave me a $25 BestBuy gift card last Christmas. I went to BestBuy, and found that for each of the 3 different things that I needed, I would spend less by buying it on Amazon, even with the gift card. Tax software, for instance, was $49.99 at BestBuy, $16.99 on Amazon.

In some stores you can spend your Best Buy gift card on an Amazon gift card.

Re: Amazon Prime members buy twice as much, don't compare on price

#32

"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…

Yes, exactly. We've gone from buying stuff at WalMart or BestBuy or whatever (with the associated marginal costs of gas, taxes, etc) to basically getting just about everything from Amazon. Small electronics, appliances, office supplies, etc. For anything over $50 or so I do compare prices with other online places, but more often than not Prime usually wins out simply based on the free shipping. For niche-ish things for example Monoprice will usually beat Amazon, but for most smaller purchases that are not immediately required, Prime has paid for itself many times over, especially considering my consumption of their member videos over my Roku.

Re: Amazon Prime members buy twice as much, don't compare on price

#33

"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…

>especially coupled with the free 2nd day shipping

There's an added bonus if you live near a distribution center, in which 2nd day often turns into next day. In a handful of cases, I've had next day turn into same day -- ordering something before I go to work, and finding it was delivered in the middle of the afternoon by a specialty shipper like LaserShip.

Re: Amazon Prime members buy twice as much, don't compare on price

#34

"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…

[deleted]

Re: Amazon Prime members buy twice as much, don't compare on price

#35
I buy a lot of stuff from Amazon without bothering to price compare. This consists mostly of items in the $100 or under range. The reasons are simple: huge selection, "free" 2-day shipping under Prime, and a near-frictionless ordering process -- I don't need to enter my shipping information and credit card information every time I make an order. And with subscriptions, I don't even need to place the order.

Prime has completely changed the way I shop for a lot of everyday items and for someone who lives in a rural area and is a 20 minute, 15 mile drive to the nearest Wal Mart, it's really made my life more convenient.

Re: Amazon Prime members buy twice as much, don't compare on price

#36
post #18

The question every entrepreneur should be asking themselves here is, "How can I create the same kind of fervor that Amazon did by introducing Prime?" Amazon generates 130% more business per subscriber just by losing a mere $11/subscriber. Those are numbers that anyone could salivate at.

Considering $35 comes from acquiring digital video content. Prime was making money until Amazon did that bizarre video play.

Re: Amazon Prime members buy twice as much, don't compare on price

#37

This is interesting. I am surprised that amazon spends only $55 extra a year on shipping per prime user. This past month alone I've received ~30 packages, all 2 day free shipping from amazon prime. This included some very large objects like a rowing machine, and some small items like a ream of paper. Last year I had a 3'x3'x2' next day aired for 4 dollars in time for Christmas. If I were to try shipping these items t…

You (and I, for that matter, at 17 packages) are outliers. Even amongst Prime members, most people won't get anywhere near 30 packages in a month, ever. The only reason I do is that I don't leave the house much (and hate doing so anyway). Most people would pick up a watch battery on the way home from work -- I go to Amazon and hit "Buy now with 1-Click".

Re: Amazon Prime members buy twice as much, don't compare on price

#38

"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…

In addition to the free shipping on 2 day delivery or the $4 next day delivery we purchase a lot from amazon on our chase/amazon credit card due to the 3% cash back on purchases from amazon. We pay the card off every month and then by the time Christmas rolls around we have tons of points to redeem. We also typically buy gas (2% back) and a few other large recurring monthly expenses on the card for the 1% cash back. I wouldn't use it for anything that I wasn't paying off immediately though as the interest rate sucks. The combination of prime and the card have significantly increased the amount we spend with Amazon.

Re: Amazon Prime members buy twice as much, don't compare on price

#39
"$35 comes from acquiring digital video content"

The digital content should not be considered in Prime membership cost. People buy into Prime membership for the free shipping, not the digital content. Rather, free digital content is meant to give people's foot into the door of Amazon streaming platform.

The digital content is more of a market development cost for the fledgling platform Amazon is creating.

Re: Amazon Prime members buy twice as much, don't compare on price

#40

"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 think the other thing that's missing from this is that Amazon's customer service is really very good. I'll spend the extra dollars buying something from Amazon than, say, one of their third-party merchants, because I know Amazon will take care of me if anything bad happens.

Yeah you can return stuff...right until they decide you're an unprofitable customer and drop you like a hot brick.
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