Does Amazon make money on each order?
Is Amazon still making money on each order it processes with this second cut in the threshold for free shipping? Getting awfully close to sounding like a dotcom that increases its revenues but loses more money each time it sells something. However, free shipping is definitely an incentive for me since shipping costs seem to be the biggest barrier when I think about buying books online.
"With Amazon.com's 30% off books over $15 and now Free Super Saver Shipping on orders over $25, there may be reasons to shop in the physical world, but price is not one of them," Jeff Bezos, Amazon's founder and chief executive, said in a prepared statement.
...The Internet retailer has used aggressive price-cutting to boost sales and chip away at its quarterly losses. In the second quarter, price cuts and shipping discounts boosted book unit sales 20%, Amazon said in July, when it reported a 21% jump in revenue to $806 million from the year-earlier quarter.