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Amazon to deliver via drones
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<blockquote data-quote="browndingo" data-source="post: 1232922" data-attributes="member: 50642"><p>Your logic is sound, but basic logic doesn't apply here.</p><p></p><p>First, Amazon is not very concerned about the cost of its shipping. It currently loses millions and millions of dollars every year on shipping because it ships so much stuff for free. Even with the deep discounts it gets from UPS and other carriers, they just don't make any money shipping 25-pound bags of rice or 70-lb table saws without charging for shipping. What they do get are customers. That's Amazon's goal - to sign up everyone on the planet with an amazon account so they'll come back and make other (profitable) purchases like e-books, which require no shipping.</p><p></p><p>Second, you'd think people pencil out the costs when deciding whether to shop locally or buy online, but they don't. I live in a small town about 50 miles from the nearest big-box appliance stores. Every weekend there's a parade of big pickups getting 12mpg heading out of town to shop at the stores and malls 50 miles away. Then they come back and brag how they got a refrigerator for $50 less than the local appliance shop was asking. They never figure in the $35-$40 the gas cost them to save that $50. Shopping is about the experience as much as the money for lots of people.</p></blockquote><p></p>
[QUOTE="browndingo, post: 1232922, member: 50642"] Your logic is sound, but basic logic doesn't apply here. First, Amazon is not very concerned about the cost of its shipping. It currently loses millions and millions of dollars every year on shipping because it ships so much stuff for free. Even with the deep discounts it gets from UPS and other carriers, they just don't make any money shipping 25-pound bags of rice or 70-lb table saws without charging for shipping. What they do get are customers. That's Amazon's goal - to sign up everyone on the planet with an amazon account so they'll come back and make other (profitable) purchases like e-books, which require no shipping. Second, you'd think people pencil out the costs when deciding whether to shop locally or buy online, but they don't. I live in a small town about 50 miles from the nearest big-box appliance stores. Every weekend there's a parade of big pickups getting 12mpg heading out of town to shop at the stores and malls 50 miles away. Then they come back and brag how they got a refrigerator for $50 less than the local appliance shop was asking. They never figure in the $35-$40 the gas cost them to save that $50. Shopping is about the experience as much as the money for lots of people. [/QUOTE]
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