Does Amazon Prime Change Online Shopping Behavior?
Amazon Prime is Amazon.com's pre-paid shipping program where customers receive free 2-day shipping (or $3.99 express shipping) on all orders (well, there are some exceptions) for a flat $79 annual fee. It's an interesting concept, but does it work? Is it worth it?
Here are a few changes I've noticed in my own shopping behavior since becoming an Amazon Prime member:
- I could go to Best Buy, or just wait until the day after tomorrow for a gadget to show up at my house.
- I could save a few bucks at site X, but Amazon ships free in two days so I'll go with Amazon.
- Does Amazon carry ______? I'll check there first since shipping is already covered.
- Yeah, it's just one item, but why not? Amazon will ship it for free.
- How did I end up with so many unopened boxes with Amazon logos on them? Impulse buys?
Has Amazon Prime changed my shopping habits? Absolutely. Has it saved me enough to justify the costs? Maybe, maybe not. I haven't kept a close eye on the numbers. However, the convenience of having my billing and shipping information stored with a site I trust, together with the trust Amazon has earned by consistently delivering orders on time has shifted a more of my online shopping to their site.
Further reading:
It may be tough for some Amazon partners to absorb shipping costs due to the relatively high commissions Amazon earns on partner sales.
This is something Amazon and their partners should work on together to deliver a more consistent experience for Amazon customers.
I agree completely. Much to my wife's chagrin, I've bought stuff that I would never have because of the free 2 day shipping :) But I think Amazon's actually lost money on me, just because of the number of items I've bought or maybe they've made money off me as I've bought a lot of stuff. The kicker was a snow-blower that I bought from Amazon. Home Depot wanted $110 for shipping and I got it shipped free and delivered 2-day UPS :)
Wow, a snowblower is exactly the kind of thing I'd least expect to be eligible for Amazon Prime.
9 times out of 10, I'll buy from Amazon over HomeDepot.com when given a choice. HomeDepot.com tends to send their shipments with a zillion styrofoam peanuts that end up all over the place after opening the box.
1. Posted by: Benjamin Higginbotham on February 18, 2006 2:08 AM:
If the Amazon 3rd party vendors were smart, they too would honor Amazon prime members. I know that I will go to Amazon.com first and look for my product. If Amazon.com has it then I'll make sure it's available in Prime. If it's not, I move on and will not purchase said product. If it is, I one click that bad boy and have her come next day.
I know my shopping habits have changed since becoming a Prime member. I just wish more product was under their Prime membership. If it was, they would get a LOT more business from me.