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so what % of the margins on "subscription box" services comes from people forgetting / being too lazy to cancel? all of it? perishables and other time sensitive
by the_cat_kittles 10y ago
so what % of the margins on "subscription box" services comes from people forgetting / being too lazy to cancel? all of it? perishables and other time sensitive stuff notwithstanding, there is no reason getting something shipped monthly is going to be a better deal than buying in bulk. these people are obviously just trying to make a buck. they are full of shit if they say they are trying to create value, but they aren't really hurting anyone i guess. its mostly on the consumers for buying it.
- ExactoKnight 10y agoAmazon Subscribe and Save gives you 15% off on your order if you schedule 6 or more items. Economies of scale to drive prices down by 15% over what you would normally pay do exist. E.g. Amazon can save money individual per-unit shipping costs by sending the entire shipment over in one go every month. The promise (and likelihood) of continual recurring revenue means the net margin made per transaction can be lower yet still sustainable for Amazon, while benefitting the consumer.