Amazon's Prime Game

fjtorres · 02-08-2012, 10:35 AM

http://bottomline.msnbc.msn.com/_new...retails-future

Easy to see why Amazon throws in the Prime ebook library and streaming videos: 130% *more* merchandise bought by Prime customers.

As usual with Amazon, things aren't what they seem to be: Prime is a loyalty program, not a free shipping club. And the Prime Library is meant to cement loyalty on *both* sides; authors as well as readers.
That explains the Library cash pool, too. It's like the creditcard rewards programs: A kickback, not from library usage per-se, but from the bigger Prime revenue pool. Which means they can keep the library running indefinitely if they choose to.

That's some fancy strategizing going on there.

pidgeon92 · 02-08-2012, 12:19 PM

However, the Prime Library books are not bestsellers, and probably never will be. Most of the books are independent, very old, etc., and are not highly priced to begin with. I find that a lot of Amazon's Daily Deals are books that are already in the Prime Library.

Penforhire · 02-08-2012, 01:21 PM

They keep adding value to the Prime membership. A few years ago all it was primarily for the shipping benefits (free or faster-for-cheaper) for someone who bought a lot annually from them. Now the benefits are quite a bit more to us, if we take advantage of them.

CRussel · 02-08-2012, 01:43 PM

Prime does EXACTLY what it was designed to do. It makes me buy, and buy from a Prime supplier, when I would otherwise have bought from somewhere else. Because I know with Prime when it will arrive. For me? The videos, books, etc., are a mildly interesting benefit. But it's the guaranteed 2 day shipping for free that is the deal maker.

Rich_D · 02-08-2012, 01:46 PM

Quote:

Originally Posted by CRussel

Prime does EXACTLY what it was designed to do. It makes me buy, and buy from a Prime supplier, when I would otherwise have bought from somewhere else. Because I know with Prime when it will arrive. For me? The videos, books, etc., are a mildly interesting benefit. But it's the guaranteed 2 day shipping for free that is the deal maker.

Exactly. I might watch a prime video on my laptop, maybe twice a year. The shipping benefit pays for itself.

Andrew H. · 02-08-2012, 01:49 PM

Quote:

Originally Posted by CRussel

Prime does EXACTLY what it was designed to do. It makes me buy, and buy from a Prime supplier, when I would otherwise have bought from somewhere else. Because I know with Prime when it will arrive. For me? The videos, books, etc., are a mildly interesting benefit. But it's the guaranteed 2 day shipping for free that is the deal maker.

For me, too. If I'm going to watch a video, I might check with Prime to see if it's available for free. But I'm only in it for the two day shipping - I wouldn't pay anything extra for the lending or videos.

fjtorres · 02-08-2012, 04:55 PM

The Library and the Videos are sweeteners.
Like casinos comp-ing the big-time gamblers to luxury suites, etc.
It's Amazon's low-cost way of thanking their best customers. Which means the services don't even *need* to be competitive with anything.

Look at the math: the library pool runs $500,000 a month? That's 6 million a year or about a buck a month per member. They can easily double the pool and still come out way ahead.

It's really a pretty good deal all-around.

bill_mchale · 02-08-2012, 04:59 PM

Quote:

Originally Posted by pidgeon92

However, the Prime Library books are not bestsellers, and probably never will be. Most of the books are independent, very old, etc., and are not highly priced to begin with. I find that a lot of Amazon's Daily Deals are books that are already in the Prime Library.

Actually, some of them are. I am pretty sure the Hunger Games trilogy is part of the library.

--
Bill

emoorman · 02-08-2012, 05:33 PM

I like, and use, both Prime Video and the free 2-day shipping.

I enjoy the British mysteries that usually run on PBS. I now find I can watch several different ones using Prime Video. That's a plus for me.

As for shipping, normally, you need a $25 order for free regular shipping. With Prime, I ordered the wife a new stylus for $7.95 without having to pad the order to get free shipping and is came in 2 days.

scrapking · 02-08-2012, 05:33 PM

You know, I'm not falling over myself with excitement at the thought of purchasing a Prime membership, if and when it ever comes to markets outside the U.S. (I'm in Canada).

I'm already deeply into Microsoft's eco-system (Xbox, Zune, PC, Windows Phone). I have streaming music, as well as the ability to both rent or buy movies and TV shows, through the Zune service, and I can then use them on all the above listed devices. I also have Netflix and, again, can use them on all the listed devices (except for Zune). So the streaming audio/video content of Prime doesn't excite me.

I'm a slow reader, I savour every word. It takes me about two minutes to read a single page of a novel. No matter how many books are in the Prime library, I won't be able to read enough to make it worth my while (versus buying the books, and owning them forever).

Don't get me wrong, I think some people can really take advantage of it, but it's interesting how it's a battle of the eco-systems these days. Amazon, Apple, Microsoft, and others keep extending their services over as many devices as they can to increase customer retention and to get customers to consider related devices. And it's working.

Lazybones · 02-08-2012, 05:44 PM

As someone who doesn't particularly care about fast shipping, Prime doesn't really lure me. However, as an avid e-reader and viewer of online content, I can see Prime getting to a point where I would subscribe for those reasons. At the moment I get a ton of use out of the Netflix Instant View service, but there is a lot they don't carry, so if Amazon can broaden their offerings significantly it would be tempting.

tubemonkey · 02-08-2012, 06:03 PM

Quote:

Originally Posted by CRussel

Prime does EXACTLY what it was designed to do. It makes me buy, and buy from a Prime supplier, when I would otherwise have bought from somewhere else. Because I know with Prime when it will arrive.

As a former Prime member, I can attest to that. Buying online was just as easy as going to the store and could be done on an impulse. Quite a bit of the time, the item would be on my doorstep sooner than a planned trip to the store. Now that I no longer have Prime, my spending at Amazon has curtailed drastically.

Prime is definitely a smart marketing move.

pierak · 02-08-2012, 06:07 PM

I got a Prime with only shipping benefits (free through the Mom's club), and I like it a lot. I live in the boonies, and being able to buy stuff on line, and getting it in two days is great. When my freebie expires, I will definitely re-subscribe. Getting the book lending and movies will be a nice extra.
I think Amazon is doing it right. I buy from merchants that make things easy for me (like no-hassle returns), and give me extra perks.

Catlady · 02-08-2012, 07:53 PM

I signed up for a Prime one-month free trial just before Christmas--mainly because that way I got free shipping for some inexpensive gifts that I had shipped direct to the recipients. In that month, I made a lot of impulse buys--I didn't have to think about combining a few smaller purchases to get free super saver shipping. But I easily could have combined the items.

I don't have a Kindle, so the Kindle-specific benefits were of no interest to me. I do sort of wish I'd tried out the video, but I never did. When the free trial was over, I didn't pay for membership, and have gone back to combining purchases to reach the $25 minimum.

It was nice getting things so quickly, but the only real advantage was free shipping on those inexpensive gifts. I'd get Prime only if it was cheaper or if Amazon raised the minimum for free standard shipping.

tubemonkey · 02-08-2012, 08:32 PM

Quote:

Originally Posted by Catlady

It was nice getting things so quickly, but the only real advantage was free shipping on those inexpensive gifts. I'd get Prime only if it was cheaper or if Amazon raised the minimum for free standard shipping.

You're in luck. Amazon Mom is free and includes free 2-day shipping.

edit: Nevermind. I just saw that they're not accepting new members just now. Sorry.

02-08-2012, 10:35 AM	#1
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	Amazon's Prime Game http://bottomline.msnbc.msn.com/_new...retails-future Easy to see why Amazon throws in the Prime ebook library and streaming videos: 130% more merchandise bought by Prime customers. As usual with Amazon, things aren't what they seem to be: Prime is a loyalty program, not a free shipping club. And the Prime Library is meant to cement loyalty on both sides; authors as well as readers. That explains the Library cash pool, too. It's like the creditcard rewards programs: A kickback, not from library usage per-se, but from the bigger Prime revenue pool. Which means they can keep the library running indefinitely if they choose to. That's some fancy strategizing going on there.

02-08-2012, 05:33 PM	#9
emoorman Obsessive Reader Posts: 74 Karma: 515292 Join Date: Sep 2009 Location: Shalimar, FL (in the panhandle) Device: Kindle PW, Nokia 1520	I like Both I like, and use, both Prime Video and the free 2-day shipping. I enjoy the British mysteries that usually run on PBS. I now find I can watch several different ones using Prime Video. That's a plus for me. As for shipping, normally, you need a $25 order for free regular shipping. With Prime, I ordered the wife a new stylus for $7.95 without having to pad the order to get free shipping and is came in 2 days.

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02-08-2012, 12:19 PM	#2
pidgeon92 Wizard Posts: 3,144 Karma: 8426142 Join Date: Jun 2008 Location: Chicago, IL Device: Kindle PW2, Kindle Voyage, Kindle DXG, Boox M90, Kobo Aura HD	However, the Prime Library books are not bestsellers, and probably never will be. Most of the books are independent, very old, etc., and are not highly priced to begin with. I find that a lot of Amazon's Daily Deals are books that are already in the Prime Library.

02-08-2012, 01:21 PM	#3
Penforhire Wizard Posts: 2,230 Karma: 7145404 Join Date: Nov 2007 Location: Southern California Device: Kindle Voyage & iPhone 7+	They keep adding value to the Prime membership. A few years ago all it was primarily for the shipping benefits (free or faster-for-cheaper) for someone who bought a lot annually from them. Now the benefits are quite a bit more to us, if we take advantage of them.

02-08-2012, 01:43 PM	#4
CRussel (he/him/his) Posts: 12,322 Karma: 80074820 Join Date: Jul 2010 Location: Sunshine Coast, BC Device: Oasis (Gen3),Paperwhite (Gen10), Voyage, Paperwhite(orig), iPad Air M3	Prime does EXACTLY what it was designed to do. It makes me buy, and buy from a Prime supplier, when I would otherwise have bought from somewhere else. Because I know with Prime when it will arrive. For me? The videos, books, etc., are a mildly interesting benefit. But it's the guaranteed 2 day shipping for free that is the deal maker.

02-08-2012, 04:55 PM	#7
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	The Library and the Videos are sweeteners. Like casinos comp-ing the big-time gamblers to luxury suites, etc. It's Amazon's low-cost way of thanking their best customers. Which means the services don't even need to be competitive with anything. Look at the math: the library pool runs $500,000 a month? That's 6 million a year or about a buck a month per member. They can easily double the pool and still come out way ahead. It's really a pretty good deal all-around.

02-08-2012, 05:33 PM	#10
scrapking Evangelist Posts: 467 Karma: 1073260 Join Date: Jan 2012 Location: Victoria, BC Device: Kobo Vox, Kobo Glo	You know, I'm not falling over myself with excitement at the thought of purchasing a Prime membership, if and when it ever comes to markets outside the U.S. (I'm in Canada). I'm already deeply into Microsoft's eco-system (Xbox, Zune, PC, Windows Phone). I have streaming music, as well as the ability to both rent or buy movies and TV shows, through the Zune service, and I can then use them on all the above listed devices. I also have Netflix and, again, can use them on all the listed devices (except for Zune). So the streaming audio/video content of Prime doesn't excite me. I'm a slow reader, I savour every word. It takes me about two minutes to read a single page of a novel. No matter how many books are in the Prime library, I won't be able to read enough to make it worth my while (versus buying the books, and owning them forever). Don't get me wrong, I think some people can really take advantage of it, but it's interesting how it's a battle of the eco-systems these days. Amazon, Apple, Microsoft, and others keep extending their services over as many devices as they can to increase customer retention and to get customers to consider related devices. And it's working.

02-08-2012, 05:44 PM	#11
Lazybones Groupie Posts: 162 Karma: 1719250 Join Date: Aug 2011 Location: Sacramento Device: Kindle	As someone who doesn't particularly care about fast shipping, Prime doesn't really lure me. However, as an avid e-reader and viewer of online content, I can see Prime getting to a point where I would subscribe for those reasons. At the moment I get a ton of use out of the Netflix Instant View service, but there is a lot they don't carry, so if Amazon can broaden their offerings significantly it would be tempting.

02-08-2012, 06:07 PM	#13
pierak Ebooks Addict Posts: 6 Karma: 47138 Join Date: Feb 2012 Location: Georgia, US Device: kindle 2 & 3 kbd, kindle dx (cookbooks only), ipad	I got a Prime with only shipping benefits (free through the Mom's club), and I like it a lot. I live in the boonies, and being able to buy stuff on line, and getting it in two days is great. When my freebie expires, I will definitely re-subscribe. Getting the book lending and movies will be a nice extra. I think Amazon is doing it right. I buy from merchants that make things easy for me (like no-hassle returns), and give me extra perks.

02-08-2012, 07:53 PM	#14
Catlady Grand Sorcerer Posts: 7,423 Karma: 52734361 Join Date: Oct 2010 Device: Kindle Fire, Kindle Paperwhite, AGPTek Bluetooth Clip	I signed up for a Prime one-month free trial just before Christmas--mainly because that way I got free shipping for some inexpensive gifts that I had shipped direct to the recipients. In that month, I made a lot of impulse buys--I didn't have to think about combining a few smaller purchases to get free super saver shipping. But I easily could have combined the items. I don't have a Kindle, so the Kindle-specific benefits were of no interest to me. I do sort of wish I'd tried out the video, but I never did. When the free trial was over, I didn't pay for membership, and have gone back to combining purchases to reach the $25 minimum. It was nice getting things so quickly, but the only real advantage was free shipping on those inexpensive gifts. I'd get Prime only if it was cheaper or if Amazon raised the minimum for free standard shipping.