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Prime delivery is subsidised by the margin on the goods, how else would 'free delivery' get paid for?
by michaelt 3y ago
Prime delivery is subsidised by the margin on the goods, how else would 'free delivery' get paid for?
- Jakob 3y agoDelivery cost increases logarithmically (one package more in the same truck) while revenue increases linearly when more people order / people order more. Increase in revenue outpaces delivery cost even for low margin items. Amazon makes more money with people on Prime, not less.