No Wonder Amazon’s Profit Margin Is Shrinking

On Sunday afternoon, at 2 o’clock, I sat down in my home in North Carolina to place an order for my favorite, hard-to-find, tea over Amazon.  It occurred to me that my daughter in Orange County, California, would love this tea, so I ordered her up some as well.  It was then that I realized that she could have the tea by 9 PM that day for $5.99 extra.

That blew me away.  How can Amazon make money on that?  Her tea was less than $20.  I didn’t chose that delivery option, however, simply because I was in no hurry to get her the tea.  I chose my free prime option.  Still, she had the tea by 6PM on Monday!

I’m so pleased that she got the tea so fast, but I am left scratching my head on Amazon’s profit.  Could they just be training all of us to buy everything from them?  Will they eventually have the largest delivery network in the country?

They are also starting the next phase of upping consumer expectations.  I’m waiting for my tea on Tuesday morning….and I’m feeling impatient based on my daughter’s experience!

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.
Comments are closed.