Ask HN: How does Amazon Prime allow users to have so much and pay so little?

1 pointsby good_vibesabout 8 years ago

I understand economies of scale but it's still a lot of value for $10.

1 comment

mattbgatesabout 8 years ago

I think when you have millions of people paying you all at once, you can drop your prices to be competitive. There are many people who would rather pay the membership fee for the year in order to have access to: Free 2 Day Shipping and Amazon Prime Video and whatever else they offer.<p>It is a win for Amazon: People who get free shipping are probably making more purchases on Amazon than those who hesitate because of a shipping cost.