February 03, 2005

Amazon.com Prime Shipping Program

In a strange move to get loyalty from customers who mostly buy on price, Amazon.com announced a new membership program called "Amazon Prime" that gives customers discounted shipping for annual fee of $79.

For a flat annual membership fee -- now at an introductory price of $79 per year -- customers can get unlimited two-day shipping. Members also get overnight shipping for $3.99. The online retailer currently charges about $10 for two-day shipping, and offers free ground shipping on purchases of $25 or more for select items.

I find this program rather bizarre, especially when competitors like Overstock.com have been known to ship products within 2 days for low cost shipping already. Like the eBay's crazy price increases earlier in January, this probably a sign of desperate times to come.