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All of this makes sense from a financial perspective, but that may not be enough to win customers over. Most recently, Amazon rolled out Amazon Day , a new delivery option that lets customers choose a specific day for all their orders to arrive. All of this makes sense from a financial perspective. Delivering packages to a single location instead of hundreds of individual homes cuts costs, and requiring customers to meet a delivery minimum for small orders helps Amazon consolidate deliveries, as does the Amazon Day program.
This cuts through the greatest promise of Prime. In this sense, Prime was constructed to be great for the consumer so efficient and great for businesses mindless impulse shopping! They force you to buy a minimum number of items to get the best deal, adding back the very psychic burden Prime had eliminated from the equation of online shopping in the first place.
This is not just around holidays. AmazonPrime no longer means what we've been brainwashed to think it means. Put simply, customer obsession means giving the customer what they want as cheaply and quickly as possible — say, within 48 hours — at the expense of profits. Anne Goodchild, a professor of civil and environmental engineering at the University of Washington who focuses on supply chain transportation and logistics, told me that Amazon significantly altered customer expectations and shopping patterns.
They have strong incentives, profit incentives, to do that in an efficient and cost-effective way. The problem, Goodchild said, occurs when delivery becomes too quick. A survey by the optimization platform Feedvisor found that 46 percent of Prime members shop online more than twice a week. Other retailers have attempted to compete by offering similarly fast shipping.
Even as other retailers lower their shipping times to keep up, Amazon appears to be tweaking its two-day shipping promise. Prime may be cheap and easy for customers, but the cost of all those deliveries adds up quickly. But now that it has more than million Prime customers, Amazon seems to be looking for ways to make Prime more profitable — which could end up alienating some of the customers it has made an effort to court.
At Amazon we are focused on delivering as many items as fast as possible. Prime offers the fastest way to receive items for free. Prime free two-day shipping is available on more than million items that arrive in two business days after they ship — all with no minimum order amount. In addition, last year we delivered billions of products in two-days or faster in the U. Justin Smith, the founder of TJI Research, an analytics firm that focuses on Amazon, told me that Amazon is looking for ways to make Prime more efficient — and cost-effective.
With merchant fulfilled Amazon shipping methods, typically there are more cost benefits associated because they eliminate any FBA storage fees.
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