2 Responses

  1. Mark
    Mark · at · · Reply

    Jim – I agree that Amazon have done a great job in executing this change in pricing. I’d be interested to analyze margin on the prime business. Have Amazon worked out that they were losing money at $79 per year (average orders per year * average shipping cost)? Do they make their margin on the prime membership (like Costco) or is this simply a marketing tactic to reduce the barrier to purchase – i.e. the consumer no longer has to worry about shipping costs when doing price comparison. I’d be interested in your perspective…. Mark

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