Sunday, November 11, 2018

The truth about amazon prime

The truth about amazon prime is that it is likely some sort of fraud and this is how I see it. I wanted to buy some sun screen for the kids.  The prime price was $7.57. The fresh price was $9.00. Except that the $7.57 only applied to a subscription price so regular prime pricing was really $7.97.




$7.99 at target, $5.99 on eBay. $8.99 from the source. $12.49 at CVS. Walmart prices vary as they offer multipacks. The ebay offer does not include shipping and so the margin is closer. The real problem with ebay is possible counterfeits.

It's clear that amazon values the subscription and is willing to give me a slight discount. But the fresh vs prime price seems strange. While this product seems on on the base price there have been other products where the prime price is higher than the lower price posted in the search results.

Think of it this way... you price and but 10 items on price. The 10 items are each priced $1.00 more than the lowest price you can get it for. So Amazon takes your $10 and sort of applies it to shipping costs if you purchase them all at once. If you stagger the purchases than amazon seems to inexplicably delay delivery until more than one package can be delivered at once. (I'm not the only one to experience that)

Insurance companies call it "assigning risk". Prime is an insurance policy that the $100+ annual fee and the increased prices will make up for the irregular delivery schedules and the cost of free returns that are not always free.

UPDATE and here again there is more price magic.

Here it costs $16.14...

But no the lowest price is $23.


What a joke!

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