I Placed an order on amazon today. 12/26/13 They still love us

[onehandsolo]

Today on my lunch break I placed an order with amazon. I am a prime member. The item only cost $22. Amazon has already processed the ordered and shipped it Ups two day. I wonder how is amazon or ups making any money on this small transaction?

 

[oldngray]

Its the old strategy of they lose money on every transaction .. but make up for it with volume.

 

[Catatonic]

Today on my lunch break I placed an order with amazon. I am a prime member. The item only cost $22. Amazon has already processed the ordered and shipped it Ups two day. I wonder how is amazon or ups making any money on this small transaction?

It is probably UPS ground unless it is not in stock at the nearest Amazon DC.

Most stuff I get from Amazon is Ground and I get it in 1 day as a Prime member.

 

[oldngray]

I don't pay for Prime and usually get my deliveries from Amazon in 2-3 days with the free shipping. I can wait an extra day or two to get my stuff. Its never any kind of life threatening situation if I need to wait a couple of days.

 

[DriveInDriveOut]

Apparently some Amazon customers are getting $20 credited to their accounts and shipping charges refunded for UPS deliveries that didn't make it on time for Christmas.
UPS botch your christmas deliveries? amazon has $20 for you

 

[bottomups]

If they were offering free overnight shipping, what shipping charges are they going to refund?

 

[DriveInDriveOut]

Not sure about free overnight shipping. I know from my amazon prime trial period the 2 day shipping was free, but the overnight was something like $5. I don't know how much overnight is if you don't have prime, probably a lot.

Handing out $20 simply for a missed delivery does go to show Amazon is more interested in customer acquisition and retention than they are in profit. They were probably hoping for some good PR as well.

 

[onehandsolo]

Actualy it is two day shipping from Arizona. To North Carolina

 

[Brownslave688]

Not sure about free overnight shipping. I know from my amazon prime trial period the 2 day shipping was free, but the overnight was something like $5. I don't know how much overnight is if you don't have prime, probably a lot.

Handing out $20 simply for a missed delivery does go to show Amazon is more interested in customer acquisition and retention than they are in profit. They were probably hoping for some good PR as well.

An envelope NDA to a location that would be 1 day ground is around $30 for the average joe. I know from experiance.

 

[joeboodog]

I heard amazon wants ups to pay the $20. You can be very generous with other people's money.

 

['Lord Brown's bidding']

I heard amazon wants ups to pay the $20. You can be very generous with other people's money.

I doubt that. In the end Amazon-not UPS-is responsible for the failure of those people not getting their packages; sorta like if someone paid you to fix their house, and then the contractor you hired failed to come through. He doesn't pay the people back, you do.

If Amazon demands any money from UPS it will be when the contract is negotiated again; however, for all the egg on the face UPS incurred from this, UPS may be the one asking for more money!

 

[Johney]

I doubt that. In the end Amazon-not UPS-is responsible for the failure of those people not getting their packages; sorta like if someone paid you to fix their house, and then the contractor you hired failed to come through. He doesn't pay the people back, you do.

If Amazon demands any money from UPS it will be when the contract is negotiated again; however, for all the egg on the face UPS incurred from this, UPS may be the one asking for more money!

If UPS told Amazon we will get it delivered then it's UPS' fault if Amazon said without UPS' approval than it's Amazon's fault. I'd be willing to bet there may be some finger pointing between the two over the next couple of month's. It will all come down to what was in writing.