lukeprog comments on Less Wrong Product & Service Recommendations - Less Wrong

24 Post author: lukeprog 02 July 2012 01:18PM

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Comment author: lukeprog 02 July 2012 01:56:40PM 16 points [-]

Amazon Prime ($79/year)

How is Amazon making money on this??? I save way more than $79/year getting free two-day shipping (or $4 one-day shipping) with my Amazon Prime service. (You also get lots of free streaming for movies and TVs from Amazon, but I never use this.)

Free two-day shipping means I buy most things via Amazon — which is great, because most things I buy are cheapest on Amazon, anyway, and I hate entering my payment information into 40 different sites to get different products.

You get a free one-month trial. If you're a student, you get a free six-month trial.

Comment author: gwern 02 July 2012 02:58:09PM *  24 points [-]

How? Well, you kind of answered the question already! http://www.lukew.com/ff/entry.asp?1508

Amazon doesn't disclose details of the Prime program publicly but according to estimates Amazon Prime members:

Increase their purchases on Amazon from $400 a year to $900 a year after they join. (source) Spend 130% more than regular Amazon customers. (source) May be responsible for as much as 20% of Amazon's overall sales in the U.S. (source) 82% of Prime members buy on Amazon even if the item is less expensive somewhere else (source)

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