• filter:

Amazon Lowered Shipping Threshold to $25

  • Page :
  • 1
  • Text Only
  • Search this Topic »
rated:
Amazon quietly lowered their shipping threshold to $25 today. Target is raising theirs to $35 tomorrow. Looks like it's Walmarts move now.

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
What year is it?!?

rated:
I see that the cover story on this weeks Bloomberg Business Week is about Walmart's effort to overtake Amazon. in e commerce.

rated:

rated:
Since day 1, Ama zon has proven that they're willing to operate at a loss year after year, reinvesting profits in one new venture and/or acquisition after another.

In contrast, Wal mart's strategy has been to cut prices wherever possible to turn a profit (low employee wages and benefits, strong arming manufacturers to cut quality/profits, etc.).

Neither Wal mart's web division nor Jet's has ever turned a real profit (definitely not enough funds generated to reinvest like Ama zon does). Zero + zero = zero, so I'm not sure how Wal mart thinks that acquiring Jet will suddenly make their web sales turn a profit. Yeah, maybe they'll make Ama zon hurt a bit, but the ones profiting most will likely just be the consumers due to competition driving down prices and fees (not that I'm complaining)... and last I checked, Wal mart is not in the altruism business.

In a game of chicken, my money's on Ama zon any day. Sooner than later Wal mart will miss those profits and flinch/scale way back. Whatever happens, I'm grabbing some popcorn... it's going to be a good show and, hopefully, a profitable one for my fat wallet.

rated:

rated:
fivetalents said:   Since day 1, Ama zon has proven that they're willing to operate at a loss year after year, reinvesting profits in one new venture and/or acquisition after another.

In contrast, Wal mart's strategy has been to cut prices wherever possible to turn a profit (low employee wages and benefits, strong arming manufacturers to cut quality/profits, etc.).

Neither Wal mart's web division nor Jet's has ever turned a real profit (definitely not enough funds generated to reinvest like Ama zon does). Zero + zero = zero, so I'm not sure how Wal mart thinks that acquiring Jet will suddenly make their web sales turn a profit. Yeah, maybe they'll make Ama zon hurt a bit, but the ones profiting most will likely just be the consumers due to competition driving down prices and fees (not that I'm complaining)... and last I checked, Wal mart is not in the altruism business.

In a game of chicken, my money's on Ama zon any day. Sooner than later Wal mart will miss those profits and flinch/scale way back. Whatever happens, I'm grabbing some popcorn... it's going to be a good show and, hopefully, a profitable one for my fat wallet.

 
When Wall  Street keeps shooting your stock higher without requiring a sane PE, you can do whatever. Will they ever make enough profit to have a PE in the normal 20-30 range, god only knows. But in the meantime, the story is good - "we are investing for the future" - and that story keeps making Bezos richer. I am surprised that he even keeps a $25 threshold for shipping - might as well for a $10 threshold - how does it matter? In fact it is better - sales are even better and the "story" gets even better.

[Since I figured that there was no traffic cop checking AMZN's PE, I did do a few vertical spreads + sold some puts. Talk about free money - if Bezos can keep getting richer, I can ride his coattails for a bit].

rated:
We might have a recession, no one seen it coming.

Actual wages dont match real world cost of living expenses.

rated:
sunsetcliff said:   We might have a recession, no one seen it coming.

Actual wages dont match real world cost of living expenses.
 

 
Yeah like the twitter 160K guy complaining about not being able to meet expenses. Personally, from a cost of living perspective, things have been somewhat great. When I bought my house, interest rates were much-much higher. Now, they have been much lower - with refinancing etc., that has translated to reduced monthly outflow. And Gas costs less. And I installed solar and that cut the top tier electricity. And the competition on the internet is keeping prices for goods down. I know I probably live in a sheltered world - but is it really bad at the lower end of the income scale? Cost of gas to help and minimum wage has been going up (granted I don't think anybody can make a living on minimum wage alone). I haven't seen the cost of "groceries" go up that much higher either - tomatoes seems to have flatlined at $1.00/lb at my local winco for the last 2-3 years. Same thing for several other things. Yeah but I do see some people load up on god only knows some real junk that they think is food and that definitely keeps going up in price.

rated:
fivetalents said:   Since day 1, Ama zon has proven that they're willing to operate at a loss year after year, reinvesting profits in one new venture and/or acquisition after another.

In contrast, Wal mart's strategy has been to cut prices wherever possible to turn a profit (low employee wages and benefits, strong arming manufacturers to cut quality/profits, etc.).

Neither Wal mart's web division nor Jet's has ever turned a real profit (definitely not enough funds generated to reinvest like Ama zon does). Zero + zero = zero, so I'm not sure how Wal mart thinks that acquiring Jet will suddenly make their web sales turn a profit. Yeah, maybe they'll make Ama zon hurt a bit, but the ones profiting most will likely just be the consumers due to competition driving down prices and fees (not that I'm complaining)... and last I checked, Wal mart is not in the altruism business.

In a game of chicken, my money's on Ama zon any day. Sooner than later Wal mart will miss those profits and flinch/scale way back. Whatever happens, I'm grabbing some popcorn... it's going to be a good show and, hopefully, a profitable one for my fat wallet.


These are all great points showing that Wally's World is no match for Ama zon.  I'd like to add another one. Back in the 80es and 90es, Wall mart was a textbook case (literally) of how to build a great logicstics infrastructructure.  Since then, they have been sitting on their hands and let the e-commerce retailers pass them by.  In the meanwhile, Ama zon has built a tremendous logistics backbone based entirely on the e-commerce delivery model.  It still blows my mind how I can order something at 6 PM and it ships the same day.  And to have the clout to negotiate Sunday deliveries with USPS - that is an acomplishment in itself.  Nobody can touch this level of efficiency on that scale.  Sure, Jets is a nice site with good prices, but it is just another site without the Ama zon logistics chain.  Maybe W-mart has more warehouses than Ama zon, but it still takes them a week to ship an order to their own store.  It will be a long way for them to match Ama zon's efficiency.

rated:
aleck said:   ... And to have the clout to negotiate Sunday deliveries with USPS - that is an acomplishment in itself.
 

Agreed. I believe that Ama zon's competitiveness in sheer number of products available, shipping efficiency, relatively superb customer service, lower (if not lowest) prices, etc. from day one was a major factor in the rapid growth and popularity of online shopping for both their site and other merchants. Arguably, Ama zon almost single handely pulled USPS back from the brink of collapse after the popularity of mailing letters waned in favor of emails, texts, IMs, social media pages, blogs, YouTube videos, etc. I'm sure they didn't have to twist USPS' arm to hard to get Sunday deliveries... after all, Bezos is crazy enough to sink all profits into opening his own postal delivery business, then where would USPS be? LOL.

rated:
Amazon is profitable in North America and AWS is profitable, losses money on international operations.
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reports...

rated:
bobbybore said:   Amazon is profitable in North America and AWS is profitable, losses money on international operations.
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reports...

  
- Let us say we give them a pass on international operations - i.e. wipe that loss. Even after you do that, the earnings seem really small relative to the share price.
- Stock based compensation costs were almost the same as their AWS earnings and more than the net income. The rising stock price will make their profit picture worst - but who buys AMZN stock on valuation?

 

rated:
PrincipalMember said:   
fivetalents said:   Since day 1, Ama zon has proven that they're willing to operate at a loss year after year, reinvesting profits in one new venture and/or acquisition after another.

In contrast, Wal mart's strategy has been to cut prices wherever possible to turn a profit (low employee wages and benefits, strong arming manufacturers to cut quality/profits, etc.).

Neither Wal mart's web division nor Jet's has ever turned a real profit (definitely not enough funds generated to reinvest like Ama zon does). Zero + zero = zero, so I'm not sure how Wal mart thinks that acquiring Jet will suddenly make their web sales turn a profit. Yeah, maybe they'll make Ama zon hurt a bit, but the ones profiting most will likely just be the consumers due to competition driving down prices and fees (not that I'm complaining)... and last I checked, Wal mart is not in the altruism business.

In a game of chicken, my money's on Ama zon any day. Sooner than later Wal mart will miss those profits and flinch/scale way back. Whatever happens, I'm grabbing some popcorn... it's going to be a good show and, hopefully, a profitable one for my fat wallet.

 
When Wall  Street keeps shooting your stock higher without requiring a sane PE, you can do whatever. Will they ever make enough profit to have a PE in the normal 20-30 range, god only knows. But in the meantime, the story is good - "we are investing for the future" - and that story keeps making Bezos richer. I am surprised that he even keeps a $25 threshold for shipping - might as well for a $10 threshold - how does it matter? In fact it is better - sales are even better and the "story" gets even better.

[Since I figured that there was no traffic cop checking AMZN's PE, I did do a few vertical spreads + sold some puts. Talk about free money - if Bezos can keep getting richer, I can ride his coattails for a bit].

  
Businesses nowadays have more studies, statistics, and tests that we could imagine. I'm sure somewhere there are studies about margin and/or revenue per transaction, and how that threshold affects it
sunsetcliff said:  We might have a recession, no one seen it coming. Actual wages dont match real world cost of living expenses.

Millennial: CEOs don't deserve to make so much money
Also Millennial: I love Amazon. Other businesses are outdated.



This will actually get me to use Amazon again. Their prices aren't as good anymore. I don't know what people are ordering so much of from Amazon that they need Prime.

rated:
InFlamed said:   
 
This will actually get me to use Amazon again. Their prices aren't as good anymore. I don't know what people are ordering so much of from Amazon that they need Prime.

 Amaz0n is already price matching a lot of WaImart prices.

Also, Prime offers a LOT more than free shipping. You get many special offers/sales and lower prices on select products, early access to lightening deals, included "free" music streaming service, included "free" tv/movie streaming service, included "free" access to all Kindle ebooks, and much more. You get so much more value for your money than paying for one comparable service like a Netflix membership for example.

You need to use your FW savvy on Amaz0n just as you do with any other seller. As long as you continue to compare prices, wait for their lowest prices, and don't buy things from them that you can purchase cheaper elsewhere, you're golden. I often put things I want but don't need right away in my cart for price alerts, then wait for acceptable price drops before buying. 

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017