Author Topic: AMZN - Amazon.com Inc.  (Read 631949 times)

Value^2

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Re: AMZN - Amazon.com Inc.
« Reply #2160 on: October 06, 2018, 05:50:01 AM »
Any idea what Bozos meant in recent interview, when he said that, before Amazon launched prime-membership they were considering rewards based system (shop your way etc), but he said that they decided to go with prime because those reward based things doesn't work.


Cigarbutt

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Re: AMZN - Amazon.com Inc.
« Reply #2161 on: October 06, 2018, 06:45:22 AM »
Any idea what Bozos meant in recent interview, when he said that, before Amazon launched prime-membership they were considering rewards based system (shop your way etc), but he said that they decided to go with prime because those reward based things doesn't work.

I guess the basic idea is to create "loyalty".

Basic points or miles rewards work well in some instance but it seems to me that they made "Prime" more of a "golden handcuffs" concept.

Why?
-a major barrier to e-commerce is the fact that there is delayed gratification. By including the delivery fee and by shortening the delay of reliable delivery, "members" buy MUCH more.
-some rewards program are integrated into a wider range of loyalty with multiple venues to accumulate and redeem points. For AMZN, it looks like Prime is a way to capture consumer surplus and to even attract more customers (and more $ per customer) into their bundle of other services (data storage, music movies etc).
-a point can be made also that the power of the Prime loyalty may even contribute to social status.

The above is from basic loyalty market knowledge and take the above with a grain of salt since AMZN is way too complex or me.

Spekulatius

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Re: AMZN - Amazon.com Inc.
« Reply #2162 on: October 06, 2018, 01:18:21 PM »
Rewards are transaction based, and Prime is more relationship based. This fits in Prime reaching out in streaming, music etc. Costco does the same thing that AMZN does.
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EricSchleien

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Re: AMZN - Amazon.com Inc.
« Reply #2164 on: October 08, 2018, 12:41:34 PM »
Speaking of loyalty...

I just had to return a pretty heavy item. It was 24 pounds. UPS was going to charge me nearly $20 for packing, supplies, and a box. I got them down to $5 eventually and just got the box. However I was so upset by this that I called Amazon in the store and told them they were going to charge me almost $20 for everything. She said, no problem and she instantly gave me a $20 credit on top of the full refund I was going to get for my return. Insanely amazing.

Any idea what Bozos meant in recent interview, when he said that, before Amazon launched prime-membership they were considering rewards based system (shop your way etc), but he said that they decided to go with prime because those reward based things doesn't work.

I guess the basic idea is to create "loyalty".

Basic points or miles rewards work well in some instance but it seems to me that they made "Prime" more of a "golden handcuffs" concept.

Why?
-a major barrier to e-commerce is the fact that there is delayed gratification. By including the delivery fee and by shortening the delay of reliable delivery, "members" buy MUCH more.
-some rewards program are integrated into a wider range of loyalty with multiple venues to accumulate and redeem points. For AMZN, it looks like Prime is a way to capture consumer surplus and to even attract more customers (and more $ per customer) into their bundle of other services (data storage, music movies etc).
-a point can be made also that the power of the Prime loyalty may even contribute to social status.

The above is from basic loyalty market knowledge and take the above with a grain of salt since AMZN is way too complex or me.

rkbabang

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Re: AMZN - Amazon.com Inc.
« Reply #2165 on: October 08, 2018, 12:59:13 PM »
https://www.cnbc.com/2018/10/08/google-search-losing-some-adverrtising-business-to-amazon-ad-sources.html

Some advertisers are moving half of their search budget from Google to Amazon, say ad industry sources
Amazon's ad budgets are increasing triple digit percentages year-over-year.
In some cases, brands are moving 50 to 60 percent of their Google Search ad budgets to Amazon, two media agencies noted.

rkbabang

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Re: AMZN - Amazon.com Inc.
« Reply #2166 on: October 08, 2018, 01:10:13 PM »
Speaking of loyalty...

I just had to return a pretty heavy item. It was 24 pounds. UPS was going to charge me nearly $20 for packing, supplies, and a box. I got them down to $5 eventually and just got the box. However I was so upset by this that I called Amazon in the store and told them they were going to charge me almost $20 for everything. She said, no problem and she instantly gave me a $20 credit on top of the full refund I was going to get for my return. Insanely amazing.

I recently had to return a heavy item (shipping weight 78.5lbs) which I paid $135 for with free shipping from a 3rd party (non-prime) seller on Amazon.  It came missing all the hardware to put it together.  I asked for a refund or for the seller to ship me another one (or just the hardware) and the seller offers me $25 and tells me to keep it.  I told him he was being ridiculous and I wanted a full refund, so he then offers me $75 and says that is fair because he can't re-sell it.  I told him that I can't use it for the same reason he can't sell it and I wanted my money back.  I finally had to file a complaint with Amazon, who refunded me in full and told me that I didn't have to return it, because it would cost a fortune to ship it.   So, I purchased the identical item from another seller and everything came with it.  Afterwards though, I thought to email the manufacturer and ask how much to send me just the hardware.  The manufacturer sent it to me for free, so I was able to sell the item on FB marketplace as a new in box item and I got $85 for it.  I wonder what the consequences are to the sellers that treat customers so badly that Amazon has to refund them?  This seller could have easily contacted the manufacturer and had the hardware shipped to me and I would have been happy.  Instead I was forced to file a complaint against them and Amazon had to pay me.  Oh well, I made $85 in profit on the whole deal.

rb

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Re: AMZN - Amazon.com Inc.
« Reply #2167 on: October 08, 2018, 01:52:19 PM »
I think that the consequences for a bad seller is that amazon will kick them off the platform.

gfp

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Re: AMZN - Amazon.com Inc.
« Reply #2168 on: October 08, 2018, 02:13:50 PM »
Yeah similar stuff has happened to me.  Amazon will disadvantage third party sellers as their seller ratings decline, eventually making it impossible for them to sell on the platform - which is fair.  I've had heavy stuff like that not arrive as new, and been issued a full refund without having to send it back.  I have a free lawnmower because of one of those issues.

bizaro86

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Re: AMZN - Amazon.com Inc.
« Reply #2169 on: October 12, 2018, 01:14:55 PM »
I used to sell on Amazon fairly extensively, and if you have too many claims they'll boot you off the platform. They are (rightly, imo) heavily biased toward the customer in the claims process, which sellers don't like of course.

I had very few claims. My favorite was someone who made a claim (without contacting me) because he/she didn't like the ending of the book they bought. It was already a used book, so I would have refunded if they had sent it back to me. Amazon denied that one.