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The people quoted in this article are ridiculous. You either buy enough from Amazon to make Prime worth it or you don't.

wwweston 13y ago
Well, on an immediate level. On a less direct level, I'm not sure the economics of using a heavily subsidized shipping service to the increasing exclusion of local retailers while they get you hooked on the concept and then incrementally raise the price over time are completely legible.
- gtaylor 13y ago
  It's still less than $9/month over the course of a year. It's approximately a $2/month increase. Skipping one Starbucks coffee would cover the cost difference for almost two months. We frequently order from Amazon and use their video service and find lots of value in both. This won't cause us to bat an eyelash. It's not a significant increase relative to the value (assuming you use Amazon's services enough to make it worthwhile).
- jfoster 13y ago
  Now we're into some game theory. Perhaps the best thing is for the group to reject Prime. (assuming your premise of price hikes after putting little guys out of business is Amazon's plan; they could also just push suppliers downward, like the duopoly of supermarkets in Australia currently are) As an individual, you are likely better off taking Prime until it is no longer the best deal.
- valar_m 13y ago
  What do you mean by "heavily subsidized shipping service"?
  - bdcravens 13y ago
    The idea being that most Prime members use more than $79/year in shipping costs, that Amazon is subsidizing the difference to gain market share.
- PakG1 13y ago
  Amazon is the new Walmart, just worse because you definitely have no local employees. :)
- Retric 13y ago
  It's generally more efficient to have a delivery truck bring a range of packages to you vs stocking a local store which you need to dive to. Of course efficiency = fewer jobs which people often object to but from a consumer perspective buying online takes less time and costs less so it's going to keep 'wining'. Now in theory amazon could raise prices but setting up a website with distribution costs far less than setting up a nationwide network of retail stores which should keep them reasonably honest long term.
- Zombieball 13y ago
  Local retailers always have the option to sell their products via Fulfillment By Amazon.

wwweston 13y ago

Well, on an immediate level. On a less direct level, I'm not sure the economics of using a heavily subsidized shipping service to the increasing exclusion of local retailers while they get you hooked on the concept and then incrementally raise the price over time are completely legible.

gtaylor 13y ago
It's still less than $9/month over the course of a year. It's approximately a $2/month increase. Skipping one Starbucks coffee would cover the cost difference for almost two months. We frequently order from Amazon and use their video service and find lots of value in both. This won't cause us to bat an eyelash. It's not a significant increase relative to the value (assuming you use Amazon's services enough to make it worthwhile).
jfoster 13y ago
Now we're into some game theory. Perhaps the best thing is for the group to reject Prime. (assuming your premise of price hikes after putting little guys out of business is Amazon's plan; they could also just push suppliers downward, like the duopoly of supermarkets in Australia currently are) As an individual, you are likely better off taking Prime until it is no longer the best deal.
valar_m 13y ago
What do you mean by "heavily subsidized shipping service"?
- bdcravens 13y ago
  The idea being that most Prime members use more than $79/year in shipping costs, that Amazon is subsidizing the difference to gain market share.
PakG1 13y ago
Amazon is the new Walmart, just worse because you definitely have no local employees. :)
Retric 13y ago
It's generally more efficient to have a delivery truck bring a range of packages to you vs stocking a local store which you need to dive to. Of course efficiency = fewer jobs which people often object to but from a consumer perspective buying online takes less time and costs less so it's going to keep 'wining'. Now in theory amazon could raise prices but setting up a website with distribution costs far less than setting up a nationwide network of retail stores which should keep them reasonably honest long term.
Zombieball 13y ago
Local retailers always have the option to sell their products via Fulfillment By Amazon.