Amazon Prime members buy twice as much, don't compare on price • Hacker News Board

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

#51

Post by rb2k_ » Mon, Feb 27, 2012, 6:35 PM UTC

ShabbyDoo wrote: post #3

"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'm personally fine with NOT buying at a cheaper merchant somewhere else because I know:

- Amazon ships fast

- Sending things back to Amazon is free and fully automated

- If something breaks in a year, Amazon will usually replace it without a big hassle

- I don't have to get another account at another merchant that will save my password and credit card data in plaintext

- Amazon packaging is great

- ...

There is more to a purchase than just the product itself

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

#52

Post by Lost_BiomedE » Mon, Feb 27, 2012, 6:41 PM UTC

lhnn wrote: post #47

•Represent 4% of Amazon's customer base •Spend 130% more than regular Amazon customers. (source) •May be responsible for as much as 20% of Amazon's overall sales in the U.S. Eh... those numbers don't line up.

It depends how they are calculating the sales numbers. All prime shipments are sold by amazon or through their warehouse holding third party goods. Non-prime sales are likely to have a majority of third party listings not supplied via amazon's warehouse.

Also, the "U.S." qualification can skew things a bit.

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

#53

Post by cleverjake » Mon, Feb 27, 2012, 6:44 PM UTC

pja wrote: post #40

Lewisham wrote: post #10

Earlier quoted context omitted.

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.

[citation needed]

I have never heard of this happening ever with amazon, though I would love to know where your experience with this is coming from.

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

#54

Post by felipemnoa » Mon, Feb 27, 2012, 6:46 PM UTC

If things keep getting as good as this my gut feeling is that some states will start suing Amazon to get a list of the customers from their state along with all their purchase history. Then they will send a bill to those people for taxes owed along with late charges and interest.

I'd be surprised if some states have not even considered this. Does anybody know if it would even be allowed by law?

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

#55

Post by smallegan » Mon, Feb 27, 2012, 6:52 PM UTC

pja wrote: post #40

Lewisham wrote: post #10

Earlier quoted context omitted.

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.

I've returned plenty of things and I have never had this happen. I have however had them tell me to keep the item when the return shipping was going to cost them more than the item itself is worth. Which to me is good customer service and smart business thinking.

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

#56

Post by philip1209 » Mon, Feb 27, 2012, 6:53 PM UTC

Lewisham wrote: post #10

ShabbyDoo wrote: post #3

"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.

Completely true. I bought shoes on Amazon, after 3 months they started to fall apart. I went on service chat and they refunded my full cost immediately and didn't even ask for me to return the old shoes.

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

#57

Post by philip1209 » Mon, Feb 27, 2012, 6:53 PM UTC

Lewisham wrote: post #10

ShabbyDoo wrote: post #3

"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.

Completely true. I bought shoes on Amazon, after 3 months they started to fall apart. I went on service chat and they refunded my full cost immediately and didn't even ask for me to return the old shoes.

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

#58

Post by ben1040 » Mon, Feb 27, 2012, 6:54 PM UTC

Amazon Prime has definitely lowered my "impulse shopping" threshold.

One Friday morning last summer, I decided to do some work around the house that weekend, but I didn't have a big enough ladder. A couple clicks later, I have a 22 foot extension ladder being delivered to me on a Saturday.

Even with Saturday overnight delivery it was $2 cheaper than Home Depot, and I didn't have to try to figure out how to cram the ladder into my econobox car to bring it home.

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

#59

Post by ShabbyDoo » Mon, Feb 27, 2012, 6:54 PM UTC

dot wrote: post #30

ShabbyDoo wrote: post #5

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…

but then they'd have a local presence in the states they ship to and would have to charge sales tax. they'd lose their ~10% price advantage.

Couldn't they use the same legal mechanisms (wholly-owned subsidiaries, etc.) employed today to avoid charging sales tax to customers in located in states with Amazon distribution centers?

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

#60

Post by philip1209 » Mon, Feb 27, 2012, 6:55 PM UTC

I started buying things like crazy on Prime while living in a dorm without a car. Getting things like shampoo and snacks delivered to my door was incredibly efficient.

I still buy most things on Amazon - it's a better deal than driving to Target or even the grocery store sometimes.