Thursday, February 10, 2005

Amazon Prime

Beware of the new Amazon Prime program; it is addictive. I've already placed 3 orders since I signed up 3 days ago.

I now understand the rational behind the program, which allows unlimited 2-day shipping for you and 4 other friends or family members for $79 a year. I had questioned how it would be profitable for them since it seemed that customers who spend well over $79 a year on shipping would quickly opt for the deal whereas everyone else would pass, resulting in decreased margins. It makes sense that people would buy more if they didn't need to worry about shipping costs (or accumulating enough items to qualify for SuperSaver shipping) but it appears that the elasticity of demand due to shipping is a lot higher than I had thought. At least for me.

Update: Order tally is now 4 in 4 days.

Comments:
Dude you fire some good articles up here. Well done
 
Now that Nick put me on his prime two weeks ago Ive made 4 seperate orders:
-3 books
-soap and deoderant
-replacement blades
-shaving gel
 
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