Offer Free Shipping on Orders over $25 | Jeff Bezos
The cost of shipping has held many people back from ordering online. (So has not receiving a product the same day they ordered it.)
Amazon currently offers FREE shipping on orders over $25. They call the program Super Saver Shipping. You can do the math on this and see that a company that operates on low margins like Amazon can't do it profitably. They would need to increase the $25 threshold.
The math tells you not to do it, but customers tell you to do it. What side do you think Bezos took ?
The side of the customer. Surprising for an engineering graduate like Bezos, but not surprising for the customer obsessed CEO that he is.
So Bezos ran the $25 Super Saver Shipping experiment and ultimately found that, while it's not good for the short-term, it pays off in the long term because you'll have increased customer loyalty with a higher frequency of order.
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