3 ms·
This is just some armchair quarterbacking, but I suspect that this kind of "no questions asked" customer service is very good at retaining new customers but may
by jjeaff 7y ago
This is just some armchair quarterbacking, but I suspect that this kind of "no questions asked" customer service is very good at retaining new customers but may not be a profitable practice long term. It may be that Amazon is able to keep this going due to subsidies from other, profitable portions of their business.
I have seen lots of companies with permissive return policies that seem to erode over time. REI comes to mind. Best Buy also used to be much easier to return things. Costco might have a winning plan by requiring membership and retaining a higher income customer.
- perl4ever 7y agoThe way gas stations work, with profits on the attached convenience store or fast food, seems to show no signs of changing. So I don't see that having Amazon operate at break-even or a slight loss, subsidized by AWS, is necessarily unsustainable.
- jjeaff 7y agoNo, but it will go away once they drive out all competitors that don't have a separate cash cow.