Cheaper Than Free: -$5 Shipping at AMZN’s

This morning’s email brought the following announcement from, Amazon’s new shoe and handbag site:

Dear Customer,

We’d like to introduce you to a new site built by Amazon and that is setting a new standard in service—meet Just as Amazon has revolutionized the way you shop for books and music, will change your expectations of shopping online for shoes and handbags. Our new site allows you to shop your way—using our unique category, brand, size, heel height, color or price selections– and most importantly, for a limited time, we’ll pay you $5 for the privilege of shipping your order overnight. No more waiting or paying extra to get your package fast.

Shipping isn’t really free — even when retailers price it as such — but such offers train customers to think it is.

And overnight shipping for negative five dollars? The whole direct marketing industry shudders.

Thankfully, this is just a limited time offer.

Technorati Tags: , , , ,

  • Alan Rimm-Kaufman
    Alan Rimm-Kaufman founded the Rimm-Kaufman Group...
  • Comments
    One Response to “Cheaper Than Free: -$5 Shipping at AMZN’s”
    1. They’ve been advertising this ‘limited time offer’ since around the start of the year. Their offer forced Zappos to do free overnight shipping.

      I’ve prepared profit and loss statements on free shipping since 1990. The p&l on this one isn’t good. And yet, as you say, the customer will be trained to think this way.