How does Amazon not lose money on Prime shipping?

[Doug W Swanson]

Here's a quick story on my latest Amazon experience: I ordered a few things on Saturday evening (including a 24 pack of mechanical pencils for $5). Sunday morning, USPS drops off a package and it was the mechanical pencils. I certainly didn't need the pencils in 12 hours but I thought it was ironic that the cheapest thing I ordered was delivered that fast!

[John K Jordan]

1) ...choose Amazon over other providers at similar or slightly lower prices

Prime certainly does make me check Amazon first when shopping.

One advantage to using Amazon over other, perhaps slightly cheaper vendors, is the seamless purchase history database. Many times I've looked up an item purchased long ago, perhaps by keyword if I don't remember the name or brand. This is handy to check the price before I recommend something to others, compare the previous to current price when ordering another, check the purchase date, or print a receipt for warranty reasons. Far easier than trying to remember who I even bought the thing from.

Another advantage is their no-questions return policy for problem items and their clout with problem vendors. I got grief recently from a vendor who would not refund the money and wanted to charge me shipping to return a wrong item they shipped directly from China. A call to Amazon and the vendor refunded the full amount and told me to keep the incorrect item.

JKJ

[Greg Cuetara]

Not sure if anyone else has seen this but an interesting article on how Amazon makes $$ or loses a little bit based upon prime memberships

http://www.sunjournal.com/news/0001/...ymHa8.facebook

Greg