Dive Brief:
-
Amazon is enticing its Prime members, who are entitled to free two-day shipping on many items, with a slower “free rush shipping” option that gives them a $1 credit toward their instant video orders.
-
Earlier this year, Amazon raised its annual Prime membership fee from $79 to $99; at the time the company said shipping costs were a factor.
-
And two weeks ago, the company announced a $126 million Q2 loss.
Dive Insight:
Until this announcement, Amazon’s fulfillment ambitions seemed to only involve speeding things up, including sky-high notions of drones, same-day, and Sunday deliveries. Now Amazon is giving its Prime members a little reward for helping them slow things down — and save some money. It’s too soon to say whether this is a small sign of Amazon reigning in its ambitions more generally, but many will be watching.