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Amazon (AMZN +1.5%) is launching a $299/year same-day shipping tier for Amazon Prime, says...

Amazon (AMZN +1.5%) is launching a $299/year same-day shipping tier for Amazon Prime, says Bloomberg's Brad Stone. The news follows a strings of remarks from Amazon in which it downplayed its same-day ambitions. eBay (EBAY +2.8%), by contrast, has been quite vocal about wanting to create a national same-day infrastructure; Google is also targeting this space. Also: As expected, Amazon is expanding its grocery delivery business to L.A.. AmazonFresh, available in Seattle since '07, will (for now) be available for free on a trial basis to Prime subs in several L.A. zip codes; its offerings include local gourmet items.
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Comments (17)
  • Paulo Santos
    , contributor
    Comments (19362) | Send Message
     
    VERY few people will pay $299 for same day or anything shipping, upfront. Unless, that is they expect to somehow get a lot more than $299 in value from it.

     

    It's another adverse selection phenomenon just waiting to happen.
    10 Jun 2013, 11:17 AM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    Every thing they do you say is wrong and the stock price just goes up. Please don't go contrarian - I'll have to sell. lol
    10 Jun 2013, 01:07 PM Reply Like
  • krk
    , contributor
    Comments (825) | Send Message
     
    They will have their niche customers that they can skim but good luck peeling off any Costco members...

     

    http://buswk.co/13S0cSc
    Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World
    10 Jun 2013, 01:11 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (19362) | Send Message
     
    Gary, so you think that a lot of people will line up to buy the $299 Prime version?

     

    And besides, the stock can always go up no matter what. The company went from making $2.50 per share to $0 and the stock went up.
    10 Jun 2013, 01:39 PM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    If it makes money they don't need a lot. Ask Whole Foods about niche markets.

     

    And yes the stock can go up but please don't say it WILL go up. You're an awesome contrarian for me.
    10 Jun 2013, 01:47 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (19362) | Send Message
     
    For now the market is filled with heroes thanks to Bernanke, so you bought the stock, the profits went unexpectedly south and yet you're coining money. Congrats.
    10 Jun 2013, 01:50 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (19362) | Send Message
     
    Meanwhile, AAPL just announced iBooks for the Mac. There goes a bit more market share.
    10 Jun 2013, 01:51 PM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    Yeah well thanks - more to you than Bernanke though! lol
    10 Jun 2013, 02:16 PM Reply Like
  • young9999
    , contributor
    Comment (1) | Send Message
     
    Amazon will lost much more than $299 for each prime as shipping cost increase. .
    10 Jun 2013, 12:47 PM Reply Like
  • glenmoody
    , contributor
    Comments (42) | Send Message
     
    amz customers are slowing peeling away from prime at $80 and others are dropping after edu and related free prime offers expire. The size of the pie for profitable retail items continues to shrink and, as usual more retailers (online and bricks and mortar) continue to chase the same declining dollar purchases.

     

    Nonetheless, I find the $299 prime offer very intriguing. amz is a competitor of mine and I order from them twice per day and calculate that they lose $5 average on each purchase I make. Bezos is fun to watch even if he is a mad scientist.
    10 Jun 2013, 03:05 PM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    "amz customers are slowing peeling away from prime at $80"

     

    Since Amazon does not disclose the Prime numbers and others write headlines like "Amazon Prime membership reportedly soars past 10 million"

     

    http://cnet.co/13Sjw1J

     

    that means it's CALL OUT TIME !

     

    Where are you getting that information?
    10 Jun 2013, 03:46 PM Reply Like
  • glenmoody
    , contributor
    Comments (42) | Send Message
     
    There is a significant difference between $80 prime and free prime. If prime membership has doubled in a year and y/y sales increases are averaging 30%, it doesn't take a genius to calculate the diff. Their cost per sale continues to rise.
    11 Jun 2013, 09:30 AM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    Now which is it?

     

    "amz customers are slowing peeling away from prime"

     

    or

     

    "membership has doubled in a year" ???

     

    Or are you just making stuff up as you go here in case something makes sense?
    11 Jun 2013, 12:54 PM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (604) | Send Message
     
    This is an absolute rumor, not a press release from Amazon. Why don't we wait until there are facts before arguing them?

     

    I am long Amazon but I don't understand the impetus for this last little run-up. I have been expecting it to break out on new highs but not based on an announcement that it was expanding fresh grocery sales, which is a difficult and low-margin business.

     

    Maybe this is all based on selling Kindles in China. I think Kindles would be popular there compared to iProducts because of the price difference. With a billion + population, Amazon should be able to sell at least 100 million Kindles in China. I wonder how much Prime will cost there?
    10 Jun 2013, 03:41 PM Reply Like
  • 426260
    , contributor
    Comments (131) | Send Message
     
    @Thalidomide Baby
    Actually, the details of the expansion into L.A. are listed on the Amazon web site:
    http://bit.ly/16XHbUy
    10 Jun 2013, 03:58 PM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (604) | Send Message
     
    Oh, then AMZN should hit $300 soon.
    11 Jun 2013, 01:39 AM Reply Like
  • Gary J
    , contributor
    Comments (4479) | Send Message
     
    People need to start stating sources here rather than making things up.
    11 Jun 2013, 07:08 AM Reply Like
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