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See Full StoryWhen Amazon slashed its free shipping threshold from $99 to $49, that made sense, and the
company's latest move from $49 to $25 was logical, too. Amazon has reserved the right to
reverse its course. It still cautions that it might drop this "long-term test" outright
at some future date. But does anyone really think Amazon will give people a reason to go
elsewhere during the holiday season? Sooner or later, Bezos & Co. will have to surrender
the nickel-and-dime approach and take the Buy.com plunge: free shipping for everyone.
Re: Amazon's Slow, Painful Dip in the Free Shipping Pool
Posted by: jpecas 2002-08-28 12:44:24 In reply to: Keith Regan
And why shouldn't consumers expect free shipping? After all, wasn't one of the promises of ecommerce lower prices due to lower overhead? No high-priced retail space in city cores or suburbs to pay for, no middlemen? Then what happened? Most items on-line are the same price on-line as in the stores. Then when you checkout, you find you have to pay shipping as well. The only perceivable benefit then of ecommerce is the convenience of not having to leave your home.
Re: Amazon's Slow, Painful Dip in the Free Shipping Pool
Posted by: davidport 2002-08-29 12:14:01 In reply to: jpecas
jpecas asks: And why shouldn't consumers expect free shipping? After all, wasn't one of the promises of e-commerce lower prices due to lower overhead? ...Yes, but IMHO the lower overhead has been offset by an inefficiency in turning inventory. Why? Because in stores, consumers can easily receive their merchandise; but in e-commerce, if people aren't home when the delivery guy arrives (and most won't be), then the ability to easily "receive" is gone. So as a result: most consumers won't even order in the first place, and in turn, most e-tailers won't turn their inventory fast enough to offset their lower overhead.
Re: Amazon's Slow, Painful Dip in the Free Shipping Pool
Posted by: workinghard 2002-08-28 14:10:24 In reply to: jpecas
There is much to be said for convenience. No lines, no rude clerks, no waiting for help, no bother, easily worth a couple dollars more.
