Amazon Key

Discussion in 'Electronics Insanity' started by Boyd, Apr 24, 2018.

  1. Boyd

    Boyd Super Moderator
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    No need to apologize to me, because it was Jon who asked. ;)

    But this was a smart move for Amazon - they will bring in millions more without doing anything, and the loyal members aren't going to cancel. If they are really losing so much on this, it will be interesting to see how high they can push the fee in the future.
     
  2. 46er

    46er Piney

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    Yep, just like the cable company model; bait 'em, hook 'em, reel the $$ in. How many cancel cable when the price goes up each year? Once AMZN gets that delivery service really going, then Prime might become profitable.
     
  3. bobpbx

    bobpbx Piney
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    Sorry Jon! Maybe I'll come upon that pie chart and see my error.
     
  4. this_is_nascar

    this_is_nascar Explorer

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    I've heard similar things about their Kindle tablets. They loose money on them, but wanted them priced low enough to fload the market.

    My wife loves her Kindle Fire.
     
  5. bobpbx

    bobpbx Piney
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  6. Jon Holcombe

    Jon Holcombe Explorer

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    You are absolutely correct according to that pie chart. But I think the pie chart is insane according to the sources I cited earlier, common sense, and family members that have Prime. Just $17 of the $100 Prime membership is used for shipping? I bought a 30 lb. dumbbell this year. That has to be more than $17 alone. I buy, and return, many items over the course of the year that do not work, and Amazon pays for the return shipping. Off the top of my head, the shipping costs and return shipping costs for me has to be hundreds of dollars. That is a big reason why I use Prime, it is cheap. Maybe UPS is charging Amazon pennies on the dollar for shipping, but I doubt it.

    Another quote from Jeff Hoyt, Editor in Chief at Moneytips, regarding Prime: "In the first quarter of (2017), net shipping losses were almost $2 billion. Since then, Amazon stopped reporting its shipping revenue and costs."

    https://www.moneytips.com/how-does-amazon-pay-for-free-shipping
     
    #46 Jon Holcombe, Apr 29, 2018
    Last edited: Apr 29, 2018
  7. Boyd

    Boyd Super Moderator
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    That clearly it makes sense for you. Didn't realize returns were free. But it wouldn't be worth it for my usage patterns, and it seems that just about everything I buy from Amazon already has free shipping. Also, unlike you, I don't mind buying from local stores when possible. If I can get the same thing at the same price, I'll go to Best Buy (or wherever).

    Just today I bought a relatively expensive piece of audio gear. I was able to get it from Sweetwater at a lower price and no sales tax - saving me about $130 compared to Amazon (and it included free two day Fedex shipping). So I will just continue shopping around and buying from the best place on a case by case basis.
     
    #47 Boyd, Apr 29, 2018
    Last edited: Apr 29, 2018
  8. bobpbx

    bobpbx Piney
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    Out of 100,000,000 people, how many have as many shipments as you? How many buy prime for the music and video mainly, and never want anything else? How big is Amazon. Do you think they may negotiate for shipping rates that you would find 'very' low? Think of car insurance. How many out of a 100,000,000 people make a claim each year? I know, that last one is not apples and oranges, but I'm just making a point.
     
  9. bobpbx

    bobpbx Piney
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    Maybe you should buy elsewhere. :p
     
  10. Jon Holcombe

    Jon Holcombe Explorer

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    Gotta do what works for you. I would rather work at my desk, in the yard, or go into the woods then to spend two or three hours driving and shopping.
     
    #50 Jon Holcombe, Apr 29, 2018
    Last edited: Apr 29, 2018
  11. Jon Holcombe

    Jon Holcombe Explorer

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    Yeah, I thought about all of that (except for the auto insurance analogy), but I see no way to reconcile the vast difference between the Fortune Magazine / Technology Review articles and the NBR pie chart. One thing is for sure, Bezos is making a lot of money and Prime must be driving sales in a big way.
     
    bobpbx likes this.
  12. 46er

    46er Piney

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    The pie chart is only an estimate, as stated by the person interviewed, put together by DA Davidson Inc., a financial services company pushing Amazon. No info was given as to what data, if any, they based the estimate on. The financial reports of AMZN are the factual numbers.

    https://stocknews.com/news/amzn-da-davidson-raises-price-target-to-1800-from-1500/
     
  13. Jon Holcombe

    Jon Holcombe Explorer

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    34% profit vs. 1 billion loss is a night and day swing. I am not seeing any information about Prime profitability, or anything to put it in context on your link, which is about Whole Foods and stock price.
     
  14. 46er

    46er Piney

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    As I said, you need to look at amazons financial statements. The link is about Davidson and its push of AMZN.
     
  15. this_is_nascar

    this_is_nascar Explorer

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    I've never had a free return on shipping being a Prime member, never.
     
  16. Jon Holcombe

    Jon Holcombe Explorer

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    Some items (some LaCrosse boots for instance), are sold with "FREE RETURNS" advertised. Just tell them you want to return it and they provide a shipping label. And if a Prime product is defective, or does not work, they will give you a UPS shipping label.
     
  17. ecampbell

    ecampbell Piney

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    I have, very easy and instant credit.
     
  18. this_is_nascar

    this_is_nascar Explorer

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    Interesting. I've since cancelled my Prime membership. None of my returns were ever for a defective product. It was usually that I changed my mind.
     
  19. Boyd

    Boyd Super Moderator
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    https://www.kiro7.com/news/local/wo...ation-sent-it-out-to-random-contact/755507974

    "The person on the other line said, 'unplug your Alexa devices right now,'" she said. "'You're being hacked.'" That person was one of her husband's employees, calling from Seattle. "We unplugged all of them and he proceeded to tell us that he had received audio files of recordings from inside our house," she said. "At first, my husband was, like, 'no you didn't!' And the (recipient of the message) said 'You sat there talking about hardwood floors.' And we said, 'oh gosh, you really did hear us.'"

    When KIRO 7 asked Amazon questions, they sent this response: ÔÇťAmazon takes privacy very seriously. We investigated what happened and determined this was an extremely rare occurrence. We are taking steps to avoid this from happening in the future."

     
  20. 46er

    46er Piney

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    It is more common than folks think. Even the new TV remotes accept voice commands, although you have to push a button or something for it to listen. I think. I don't see any need for it, doubt I ever will. A good article about this stuff and steps to take to reduce problems.

    https://www.wired.com/2016/12/alexa-and-google-record-your-voice/