I was
ALWAYS going to choose the free shipping--whether I was a Prime member or not. Now I'm paying for the option to choose when/if I want to get it a little quicker (for no additional per-order charge). All for the price of a video streaming service that I use regularly. The ability to selectively earn purchasing credits, occasionally borrow an ebook, or listen to some music for free is just icing on the cake.
To assume that all people become (or stay) Prime members for the free shipping alone is silly. In the past, at $79, maybe. But that was the past. Prime (and its members) have changed since then.
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I don't understand the logic.
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You'll never understand the logic if most of the perks that Prime offers hold no interest for you (or if you insist on it still being all about the shipping). That doesn't mean it's not logical--it only means you have different preferences/priorities than most Prime members.