Amazon benefits from free shipping
The only reason why I buy on Amazon is exactly the reason why many other consumers are flocking to Amazon...making their free-shipping porgram a hit and causing its revenues to continue to increase (Amazon expects a 2nd-quarter operating income of $45 million to $60 million and sales growth of more than 19% in 2002 to at least $4.7 billion) according to this Wall Street Journal story (subscription required):
If Amazon.com Inc.'s leadership team had known five years ago what offering free shipping on orders larger than $25 would do, they would have done it much sooner, Chairman and Chief Executive Jeff Bezos said at the company's annual meeting.
...Asked about third-party sales on Amazon.com's site, Mr. Bezos said these sales "are now a very large part of our business." In the first quarter, third-party sales made up 19% of total revenue, Mr. Bezos said, adding that customers have told the company they like to have the choice of both new and used products.