- cross-posted to:
- [email protected]
- cross-posted to:
- [email protected]
Amazon gives non-Prime members free shipping at $35 or more of eligible items. Instead of simply letting users get the product with free shipping, they’ve added a discount that prices it exactly one cent below the $35 limit, while only subsidizing the price with $3.38, which is about half of what they’ll then charge you for shipping.
That set is normally 39.95 off iFixit’s site.
They knocked off $3.38 i’d just go add a pack of duracels 2032’s and get them for almost nothing, free shipping.
TBF, I usually have something sitting in my cart that I didn’t feel like ordering yet anyway.
So they’re getting you to buy more than you wanted or pull the trigger on something you were waiting on. Sounds like this is still a win for Amazon.
Saved me $4, I’m fine with it.
We need another amazon to beat the existing amazon up, retail sales are just bloated and dead.
OR, how about we start getting mom and pop shops to do local ecommerse with delivery.
I dont think you understand how “Amazon” exists as we know it.
Amazon, the store. the store that sells stuff at “unbeatable” prices and has convenient fast shipping options. exists because Amazon, the corporation, makes most of its money through platforms that are NOT the store.
for example the AWS division, which handles web hosting, Makes money hand over fist compared to the store. so they can afford to sell stuff at either a loss, or breaking even. (and they’re still somehow making money off the ordeal. dont ask me where)
Its hard to make a competitor to Amazon because you’d need a surrogate company constantly feeding it money to stay afloat. Amazon the store, is a facade of a larger corporation
I’m not sure that’s entirely true.
Most of their money comes from retail, either the site, subscriptions, or the seller services they provide. AWS, while massive, isn’t what’s keeping them afloat.
You’re entirely correct though that competition with Amazon is difficult because of those additional sources of revenue. Having additional stable sources of income gives them the ability to accept lower margins in retail with less risk.
The way they make money selling things with no profit or at a loss is to ensure that someone else is always paying the difference. “Free shipping” with a paid subscription means that rather than providing shipping for a loss, they just need to do it for less than the subscription. Turns out “guy with a van” can deliver a lot of packages for quite cheap. So many that he’ll be out delivering from 3am to 9pm, and for $5 they’ll drop your package off first and call it overnight.
In some cases they can get the seller to pay for shipping as a promotional incentive, since Amazons conditioned people to look for free shipping as a precondition to considering a product.
Only give away for free what you got someone else to pay for.
Revenue is not profit.
Yes, but revenue pays for things like salaries, advertising, etc.
It helps with cash flow sure, but if it’s not profit you’re going into debt to pay that.
What do you think profit is? It seems like you’re conflicting profit with income.
I mean, non profits exist. Of course it’s not the case for Amazon, but you don’t need to profit in order to exist as a company, and people still get to make money.
They were also famously unprofitable for a very long time, longer than most businesses would consider reasonable. They were founded in 1994 and it took until 2003 to make a profit. They were investing a lot of money back into the business.
Exactly. A systemic issue with capitalistic markets is that they inherently select for short term thinking.
Does it make sense to destroy 90% of your profitability 5 years from now for a 20% bump in profit this quarter? Well, yes, it does, because that’s 20% more profit to expand and take over the market.
Even if a business were to try to make good long term decisions, it would immediately be crushed and pushed out of the market by all of its competitors willing to make those shortsighted decisions for immediate profits.
Except in the case of Amazon, thanks to AWS they were able to make good long-term decisions with their e-commerce platform by making short term decisions with AWS.
AWS didn’t exist until after Amazon became profitable. They were already making good long-term decisions before AWS.
Right, back when they were just a bookstore. All I really know about Amazon is that they focused on long-term profitability over increased short-term profits to expand and capture more of the market, and it worked. The problem is that not everyone can do that. They spent every year since 1994 operating at a loss, when anyone else would have been snapped up by another company in the space, and it’s not clear how that didn’t happen. The landscape of e-commerce would have been very different if it had.
Walmart and Target already do it. Just get rid of the public facing store part and send it to me as cheap as retail.
There are companies in china already doing this.
How have you ‘saved’ money that you spent, exactly?
I need a $40 screwdriver and 12v battery
They reduce the price of the screwdriver kit $4 to make it not free shipping on it’s own
I buy them both for $40.
I would have to buy them anyway, I spent $40 instead of $45 and still got “free shipping”
If they bundled the item with a pack of batteries in a retail store and sold it for 39.99, would you still consider it cheaper?
Would you consider $39.99 cheaper than $45?
not the person you responded to but, would depend if that’s the only thing I’m getting, gas costs money, I defo wouldn’t concider that small of a discount saving money since it will cost me about 6 or 7$ in gas getting there and back
It’s still cheaper than it would have been without Amazon’s discount
Cheaper on Amazon, or anywhere else?
Both
How? You cannot buy this “cheaper” version without spending more money. It’s 39.99 with free shipping other places. It’s $39.99 on Amazon because you have to pay for shipping. You’re not saving money, you’re just getting more stuff from Amazon.
Unless you buy useless stuff just to avoid shipping, it’s still money spent toward something you would have bought later (possibly for a higher price, on retail). It counts on future savings.
If you spend the same amount of money to get more things that you were going to buy, you’ve saved money.
If I need bread and cheese and one store sells bread for $10 and cheese for $5, and another sells $10 bread half off if I buy $5 cheese with it, I save money going to the second store, even if I only came into the store looking for bread.
Amazon is using dirty tricks to ensure you buy from them even if it’s at a lower margin. A smaller profit is better than no sale. It also gets consumers more accustomed to just buying stuff on Amazon, and increases the sales producers see through the Amazon platform. Some producers entirely offload their commerce to Amazon since enough of their sales come from there it makes running their own less viable.
Supposed you were going to buy batteries elsewhere anyway. So you saved money by doing it in one go there.
deleted by creator
Check camel camel.
U can probably order that for temu or aliexpress. Skip bezos pockets, comes from the same source and is not gonna be price gauged