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Old 03-20-2013, 05:54 PM   #135
fjtorres
Grand Sorcerer
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Okay, guys, check the comments here to appreciate what that monster Amazon warehouse (and its hundred or so siblings all over the planet) is for:

http://www.thepassivevoice.com/03/20...ined/#comments

And why they need them:
http://business.time.com/2013/03/18/...yone-imagined/

Quote:
The net result of Prime membership — and the thing that has to scare the bejesus out of Amazon’s competition — is that it tends to cause subscribers to stop shopping anywhere else. It’s assumed that Amazon’s prices are competitive. With Prime, shipping costs become a total nonissue. Subscribers automatically defer to shopping at Amazon first because they know shipping is free. And when they spot something they like at another retailer’s site or in a store (yes, it still happens), Prime members are likely to see if Amazon also sells the item. Chances are, Amazon does, the price is about the same or better, and two-day shipping is, of course, thrown in for free.

Sure, Amazon “pays” for all the shipping on Prime orders. A 2011 investigation estimated that the average Prime member used $55 worth of shipping and $35 in digital content annually. That’s $90 total, so Amazon was “losing” $11 annually by collecting its $79 membership fee.

Regardless of what might seem like a net loss, Amazon Prime has been and continues to be a hugely profitable enterprise for the e-retail giant. A Prime member now makes $1,224 in Amazon purchases each year, on average, compared with $505 for non-Prime customers. After factoring in costs incurred for shipping and streaming, the average Prime member yields Amazon $78 more in profits than other customers, according to Morningstar. Yep, it’s nearly equal to that $79 membership fee.
US$1,200 dollar in business per Prime customer, times 10 Million customers.
That's what those warehouses are for, taking Prime Global.

Bookstores? Those are practically collateral damage, accidental roadkill.

The game those folks are playing is just breath-takingly big...

Last edited by fjtorres; 03-20-2013 at 06:00 PM.
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